This is one sweet widget, using some of the super-alpha location platforms from Y!RB as well as ZoneTag (zonetag.research.yahoo.com).
FireEagle is the current super-alpha location platform being developed right here at Yahoo! Research Berkeley. It allows multiple applications to update and access your location to predefined levels of privacy. This specific badge looks at your current location to the ZIP code level and displays a picture taken in this location. It was developed by Rahul Nair, one of the researchers at Y!RB.