The redshift basically indicates location, yes, if you interpret that as "location in spacetime". The reason cosmologists give the redshift instead of a distance (e.g., "1 billion light-years away") or a time (e.g., "1 billion years ago") is that the redshift is what we actually observe, and how it translates into a distance or a time depends on other cosmological parameters whose values we haven't necessarily pinned down. So rather than have to specify which particular values of all those parameters are being assumed when a distance or a time is given based on an observed redshift, cosmologists just give the observed redshift directly.