I recommend beginning with threads where obscured locations are discussed, and go from there if you have further questions. Many participants in those threads know more about it than I do. Here are few relevant threads:
Threatened species obscured locations - General - iNaturalist Community Forum
Obscuring locations for sensitive areas - General - iNaturalist Community Forum
Location obscured for non-threatened species? - General - iNaturalist Community Forum
Obscured Observations locations and Comments - General - iNaturalist Community Forum
Pop up to warn users not to post location info on obscured records - Feature Requests - iNaturalist Community Forum
1 Like