This is to help with the analytics that are included in the app. This information is sent anonymously so that I can get an idea of where users are from. This could help prioritize things like translations in the future.
You are free to deny the request, the app will work exactly the same if you do, but I encourage you to say yes. Again this will only get your location once when you launch the app and it is not connected to your license number, user ID, email or anything that can identify you personally.