Location Groups provide a useful way of collating an associated list of holes, allowing for quick and easy recall of that subset when filtering. This helps retain focus on the relevant zone, phase or other division within a project.
Saved Searches are defined in a similar manner, allowing filters to be saved. They provide a convenient way to shortcut to and review changes to pertinent parameters within a project.
The following video discusses the differences between these two related areas of functionality and provides a practical demonstration of how they might be used: