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Open the Settings app. Find and tap the "Privacy" option. Tap the "Location Services" option at the top of this menu. Swipe the switch next to "Location Services" to the "Off" position. Close your Settings app.

Article:
"Settings" is the grey gear icon--it should be on your iPod's home screen.  You can disable or change your location settings from here. Location Services updates your iPod with your current location via GPS and cellphone tower, which is a significant drain on the battery. Disabling this background service will lengthen your battery's life considerably. Your location services should now be disabled!