One question to ask yourself is whether you want people to see the observation date. If you want the date obscured, then select “obscured” for the location. But if you want other people to see the date, then you need some workaround like setting the geoprivacy to “open” with a large uncertainty radius. This thread explains how to do that: https://forum.inaturalist.org/t/obscured-observations-only-showing-month-observed-for-other-users/30315
I post lots of moths from my backyard. Originally, I set them to obscured, but I later switched to open with a large radius. Flight period data is very important for moths and I didn’t like the dates being hidden.