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If you would like to change your current Location Field for all members without loosing the information they entered into that field then you need to run the following SQL statement against your database:
UPDATE `dsb_profile_fields2` SET `field_type`='field_loc_req' WHERE `field_type`='field_location'
Then in your admin panel go to Profile Fields from the menu and click on the top link to regenerate the profile fields cache.
Make sure you backup at least the
dsb_profile_fields table if not the whole database before making any change.
You can run the SQL query with a database management tool like phpMyAdmin which should be available in your server control panel.