Hi @rr-4098
Thank you for reaching us!
I understand your concern about named locations and policies.
To answer your question yes, to create new locations and custom policies you need the Microsoft Entra ID P1 or P2 license.
The reason you are able to edit the listed Blocked Countries policies is a predefined policy for all tenants that do not require a premium license.
To explore the features of the Microsoft Entra ID P1 or P2 license you can activate the trial version.
Reference: https://www.microsoft.com/en-us/security/business/microsoft-entra-pricing
https://learn.microsoft.com/en-us/answers/questions/542955/i-need-to-activate-free-trail-premium-p2-free-tria
Thanks,
Akhilesh.
Please Accept the answer if the information helped you. This will help us and others in the community as well.