I was navigating about this text I'm currently reading and I grew curious what exactly is meant by Loc or Location in the context of a kindle book. Is this essentially a word or character count?

If you look at the screen shot below I outlined in red the section of the UI that points out the text progress. There it states Page 14 × Loc 358 at the slider bar, and in the status bar 5% - Page 14 of 393 - Location 358 of 7091 Kindle Location Progress Bar

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According to the MobileRead Wiki, a location is 150 bytes.

The Kindle uses an absolute position system named locations which are actually every 150 bytes in the file. Easy to generate accurately but are much smaller than a standard page so you get a range of numbers on every page. The exact formula is floor(bytes/150)+1, and note that this is bytes, not characters, and includes all the markup and tags in the mobi-html, not just the displayed text.

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