Forgive me if I add to your confusion a bit instead of clearing it up.
There are actually three locations in Koha: Permanent location, current
location, and shelving location. The first two only matter if you have
more than one site; if you only have one site you can set them to the same
value and
Hi!
While migrating our catalogue to Koha I get quite confused with the location
handling. Location for me is "the place where I have to go to fetch the item".
So an item could be in the general collection `main reading room`, but I may
have a special area there like an exhibition or a new item