Ignoring GPS, which you would have turned off, phone location is estimated from tower data. Under common conditions that location precision is on the order of a quarter mile where three cell towers typically see your signal. This can vary wildly with far greater precision in a dense area with micro cells to much worse precision out in the boondocks where only a single tower sees your signal.
It is possible to fudge if not spoof your location by using a high gain directional antenna in the right conditions to have your phone connect with a cell tower much farther away than normal. In theory, time-of-flight measurements could measure the delay and compute your actual greater range. In practice, other than a few proof-of-concept deployments, I don't believe this capability was ever implemented on a large scale.