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The Select By Location tool (also known as Select by Master Path) is used for marking files which duplicate the ones in your selected path. For example, you select the path you want to keep (eg D:\Photo), and the files in D:\Data\Temp which duplicate those in D:\Photo will be marked.
 
Folder Name  
The name of the folder for marking / preserving.
 
Include Subfolders of this path check  
This includes all subfolders of this path.
 
Mark files that duplicate this 
folder elsewhere  
This button will mark all files outside  the selected folder/tree which are duplicates of the files in the selected folder. 
 
If the 'Preserve' option is checked then any files in the selected folder/tree will be un-marked.
 
Example:
Selected folder name =  C:\MyFiles\ 
 
Files in Group 1: 
C:\MyFiles\file1.txt 
D:\Backup\file1.txt 
D:\Backup\copies\file1-copy.txt 
 
Files in Group 2: 
C:\MyFiles\Doc.txt 
C:\MyFiles\Doc (2).txt 
D:\Backup\Doc.txt 
D:\Backup\copies\Doc.txt 
 
After this operation the files in the Backup folder are marked:
 
Files in Group 1: 
C:\MyFiles\file1.txt 
D:\Backup\file1.txt  - MARKED  
D:\Backup\copies\file1-copy.txt  - MARKED  
 
Files in Group 2: 
C:\MyFiles\Doc.txt 
C:\MyFiles\Doc (2).txt 
D:\Backup\Doc.txt  - MARKED  
D:\Backup\copies\Doc.txt  - MARKED  
 
 
Mark files in this folder that 
have duplicates elsewhere  
This button will mark all files inside  the selected folder/tree which have duplicates outside the folder/tree. 
 
If the 'Preserve' option is checked then duplicates of files inside the selected folder/tree which are outside will be un-marked.
 
Example:
Selected folder name =  C:\MyFiles\ 
 
Files in Group 1: 
C:\MyFiles\file1.txt 
D:\Backup\file1.txt 
D:\Backup\copies\file1-copy.txt 
 
Files in Group 2: 
C:\MyFiles\Doc.txt 
C:\MyFiles\Doc (2).txt 
D:\Backup\Doc.txt 
D:\Backup\copies\Doc.txt 
 
After this operation the files in the MyFiles (selected) folder are marked:
 
Files in Group 1: 
C:\MyFiles\file1.txt   - MARKED  
D:\Backup\file1.txt 
D:\Backup\copies\file1-copy.txt 
 
Files in Group 2: 
C:\MyFiles\Doc.txt   - MARKED  
C:\MyFiles\Doc (2).txt   - MARKED  
D:\Backup\Doc.txt 
D:\Backup\copies\Doc.txt 
 
Select Folder button  
Brings up a folder dialog box to allow you to to select the folder.
 
 
Select current folder button  
Selects the currently highlighted folder from the duplicate files list.