What is GEO tag

A geo tag is the method of associate a geographical location with web page content. The webmaster can insert exact geographic coordinates in the code controlled in a Meta tag which will tell search engines of an exact location.

How it is beneficial for seo?
 
It is used to insert metadata with geographical information into a file.
It is used in google Picasa to match your photos in specific location.
 
Geotagging (also written as GeoTagging) is the process of adding geographical identification metadata to various media such as a geotagged photograph or video, websites, SMS messages, QR Codes or RSS feeds and is a form of geospatial metadata. This data usually consists of latitude and longitude coordinates, though they can also include altitude, bearing, distance, accuracy data, and place names, and perhaps a time stamp.
 
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