A system setting will disable gps globally, so no app can use it (should be separate switches for gps and cellular location I'd have thought?).
Some apps have options to use gps or not, or to use your location or not. This lets you manage your power better (eg I leave gps on so Maps can use it, but don't need my clock widget checking my location, and tell Tasker to just use cell tower id to save power at the cost of precision). I guess that's what the other two settings are examples of. I'm sure a Verizon setting will just be for Verizon apps. I don't have this handset and am on the wrong continent for Verizon, so can't check the settings directly.