I often use it in the Search File Results of Windows File Manager to open the parent folder of a file. The idea is to see all the accompanying files.
For example, let’s say, you search for DOCX files in a folder in Windows File Manager. The list that you get contains the DOCX files from subfolders too. In this case, you can select any file in the search list and right-click on the “Open File Location” menu to open the parent folder of that file. This can be useful to see all the accompanying or related files of this file.
Here is an example. I’m searching for some icons containing OPEN in their file name. Then I select one of them and right-click on “Open File Location” to open the containing folder to see other accompanying icons of the same image.