Option to use current location
I may be out hiking. Needing to add my location each time is unnecessary. If I plan on going back then I can see saving the spot but even then your location could be off by a few feet or a few hundred yards.
Yes, it makes sense to have a dynamic location that is based on current location of the device. This will benefit those users who don't mind keeping location services enabled for longer times. Not a big issue these days because newer versions of Android offer good control over location permissions for apps.
Note to myself: A related idea would be to inform the user when current location is very different from their currently selected named location, if any.
Aside, note that a few feet or few yards will not make much difference in terms of accuracy. 2 kilometers on the earth's surface roughly translates to about 1 arc-minute of difference on the celestial sphere.