The flight controller (which is inside the drone) looks at the number of sats and how well their spread is to assess the reliability of the location data.
If you are out in the open, GPS Health will always be 4 or 5.
In a situation where the number of sats is low and/or they are not spread well across the sky (which happens when only a small area of sky is visible), the GPS health drops and if it's 0 or 1, the flight controller has no confidence in the data and won't use it as it is likely to include significant errors.