It is not very clear what question you are trying to ask.
S is a displacement, not a position. If you wanted to denote a position, you would typically use "x" as the variable name instead of "s". The choice of variable name is purely based on convention. There is no deep physical significance. A displacement is a directed distance between one position and another.
When we write v = ##\frac{ds}{dt}##, this means that there is a particular ratio between distance traversed in an interval and time elapsed in that interval that is approached as the interval decreases toward zero and that that ratio is v. This notation is used in Calculus where the meaning is defined formally with a quantified expression involving epsilons and deltas.
Technically, the S in v = dS/dt does not denote any particular fixed small displacement. It does not denote anything at all. It is only a part of the notation whose meaning is as above. Even so, you can think of dS/dt as denoting a very small displacement (dS) divided by a very short time interval (dt) without going badly wrong. [In the 20th century, mathematicians came up with theoretical support (non-standard analysis and the Transfer Principle) which can make it formally correct to consider dS/dt as the ratio between an infinitesimal displacement and an infinitesimal time].