Well, I’m teaching this to my gen chem students shortly (it’s in chapter 1) and I can say that part of the understanding of precision is missing there. In a situation where you actually perform replicates, that standard description is true.
In a situation where you have taken a single measurement (an observation in this case), the precision is reflected by the fineness of measurement. In a lab setting, that depends on the gradations in or capability of your equipment. In the iNat situation it is dependent on the observer’s phone/GPS setting or personal recollection or their common sense- all of which would be reflected in the radius of the precision circle.
I tell my students that when they get into higher level chem they will get into the normal way of doing replicates and reporting precision with +/- error bars after doing error propagation etc. But at their beginner level, they won’t see replicates in a numerical problem and should judge precision by the significant figures (ie, fineness) they see in the values they are presented with.