When you filter library content using one of the Documents or Tags explorer views, it is not possible to tell where a file or folder is within the library folder structure. The Locate File and Locate Folder actions reveal the actual location of a file or folder in the library.
This option is only available if a Documents view (All Documents, I’m Editing, Others are Editing, Recently Modified, Recently Added, or My Favorites) or Tag view is selected in the explorer pane.
The view updates to show the file/folder in its library location.