What happens with location in sandboxed apps?

Recently many apps were sandboxed, but we cannot choose what feature is switched off and what keeps working. So we have to accept all, location included. What happens if I have location switched off in settings? Do apps still notice location? And if I switch location on in settings, do all those apps notice location? What is the relation between ‘location’ and apps?

Of course the setting still applies. The permission is just to use location when available.