The main page that loads when you click on Components -> Hotspots is the called the Locations screen. Here you can add new hotspots or manage already existing one. Most of the buttons on the top right are self explaining except for the Geocode one.
The Geocode features is there to help you find the coordinates of locations on the base of their street address. Maybe you are asking yourself - why are there hotspots that have no coordinates? If you create your hotspots one by one - you will most probably never need to use this feature. If on the other hand you have imported locations from 3rd party component or databases - most probably you have only the street name, city and country data. Without latitude and longitude coordinates we won't be able to show the hotspots on their proper position on the map, that is why we need to query the google services by providing the street name, city and country and they will return the coordinates of each hotspots (if they manage to find them).
The google geolocation feature returns the best guess coordinates - it might happen that they are wrong. You are advised to check the locations after the use of this feature. Don't use this feature on Locations that already have proper coordinates - you risk to lose those if the google service return wrong coordinates.