What does the “For stable spoofing, turn on…” banner mean?

The list may include: location access; the “Allow all the time” location permission — without it spoofing will not resume by itself after the phone restarts; selecting the mock location app in developer options; the notification permission; unrestricted battery usage; background autostart — on firmware that has such an option.

Some firmware does not tell the app that an item is already on, so it stays in the list. If you have turned everything on and an item does not go away, long-press the banner — it will hide.

There is a similar banner about precise location and Wi-Fi and Bluetooth scanning — it has a separate question.