A Virtual Location is a way for us to change your location to a specified country. In other words, we assign an IP address to your computer located in the country you want to be connected to, so that websites, services, and content from that country will appear to you as normal people from that country would.
For example, if you live in the United States and you connect to the United Kingdom Virtual Location, you'll automatically see content from the UK. On YouTube, you'll be recommended UK videos instead of your normal US ones.