well, that's all the fun stuff there!
{section} starts the loop and it's named position and it's trying to figure out where the user's location is in the application. if the
$location[position].1 is not where you're at, then it starts an anchor. Otherwise, it's just text,
{$location[position].0}. Then it does that logic again to see if it needs to close the anchor.
There's also
another post here where they talk more about how to modify this bit of code.
How well did this answer your question?