The rules changed for Instagram locations in 2015. Gone are the days when you can type in a website address in the location (boo hoo!). Instagram locations synchronise with Facebook pages. So if you have a Facebook page set up, then always add your location to your Instagram posts for additional exposure to your page.
I still do this, even if I am sending out a quote of the day.
If, like me, you are using a scheduling tool such as Onlypult (which I use), then you are unable to change the location at the time of posting. You will need to pop into the post afterwards and just update the location. (It’s a pain, but worth doing).