Location types are there to help you organise your rooms to be able to navigate among them. There is a hierarchy among locations, which follows this way:
"Building" is the highest group, under which all other groups can be ordered.
"Building parts" can only be created under buildings, they are used at larger buildings representing building wings, or other areas that consist of more than one function.
"Floors" can be created directly under buildings or building parts. This is the group that lets you create multi story projects.
"Apartment, Shop, Office". These locations group your rooms by their function. Although they appear in the list early on, once one of these types selected, only rooms and zones can be sub ordered under them. Shops and offices however can be single room or multiply rooms. For example, in a mall the bigger shops may consist of many rooms, such as dressing rooms, storage rooms, show rooms, but all these locations can be grouped under a "shop" location. Apartments, building parts and offices work the same way.
"Room" is what you should be drawing most the time. These are the rooms that you survey on the field.
"Zones" are wall-less areas that can be drawn inside of a room to represent a different function, covering, floor height or headroom if there is more in one room.
"Wall view" a simple Zone providing "Sketching" mode if you need something to sketch (and/or measure) in an elevation view providing you with a limited work around.
Also here is a written a step by step walkthrough of the process:
When you open a new project you
will be given your first location that is designated as a building. You can
check this if you open your view report, which is the second icon at the bottom
of your screen. If you click on the "building" you will be given a
list of different possibilities to choose from, but let’s keep it as building
Go back to the floor-plan view and tap on locations to open the location menu. Tap on the "+" icon and select add sub-location. Go to the property view again, the location type should be a room now. Tap on it and select the floor option. You may notice that the list of properties extended by "floor number" property that is set to 1. This means that you now have created a location group that behaves as a floor inside a building.
Now go back to floor-plan view again and once more open the location menu and add a new sub-location. In the property view the initial location type is set to room, if you tap on it you will see a different set of options to choose from. These options are for to group locations further, but let’s keep it a simple house, and keep it as a room.
Draw you first room with the drawing tool. This room is now the first room on the first floor on you first building. By navigating with the now appearing back button on the top left corner in the location, and the arrow that appears next to the name of the grouping locations. This way you can create multiply floors and multiply buildings in one project. the other options are there make you able to create more groups if you are surveying larger building with more functions.