Have a nice day! :-)
An IP address uses a 32-bit number for representation, which can provide roughly 4 billion unique numbers. An IP address acts as a unique label for a device connected to the internet. This provides a couple of different features including network identification and location addressing. An IP address be used to identify your activity on the internet. An IP address is just part of the normal operation of the internet via various host lookups.
Your IP address is listed above. This free IP lookup tool simply reads your remote address - the one your device is using to connect to the internet. This is the internet 'labeled' location of your device. You may share this location with other devices, for example - all the devices on your home network, or all devices routing through a particular gateway, vpn or proxy.
Your IP information can be used to find your location, in certain circumstances. For example, if you are the only one on a home network, are using a mobile device or similar - without a proxy - your internet service provider (ISP) would generally be able to identify you. However, if you are using a vpn service or proxy, or you share your public IP address with many other devices, it will be more difficult to identify you using your IP address alone.
Your IP address can generally be used to identify you. However - this shouldn't be something you should worry about. Mr joe anonymous generally can't use your IP address to find your exact location - he could, however, figure out the country your IP address is in. Your ISP or the government, however, may be able to find your exact location - with a fair bit of effort.
You can change your IP address (hide your location) by using a VPN network, a Proxy service or the tor project. This won't necessarily make you completely anonymous, however may improve your security depending on circumstances.