All sensors emit a Network Status Event with meta-data about which Cloud Connectors can hear it and how strong the signal is. This information can be used, together with having known locations for the Cloud Connectors, to know which Cloud Connector is most likely the closest and roughly locate a sensor.
In addition, clear naming conventions and using Labels can be helpful to know where sensors are located.
An example of implementation can be found in the Asset Premises Tracking Using Disruptive Technologies Sensors application note.