Deleting an Inventory Location is as simple as hitting the Delete button from the Inventory Location record. As long as the inventory location doesn't have any inventory history, you can delete the inventory location record.
If an Inventory Location has history and/or has quantities of items in stock stored at that inventory location, you will need to perform an Inventory Transfer to move all inventoried items out of the inventory location to another inventory location. Once the balance of all items are zero for the inventory location, you can inactivate it.
To inactive it, you will need to open the Inventory Location record and click the Delete button (Don't worry, you are not deleting it). A prompt will inform you that the inventory location has history and will ask if you would like to inactivate it instead. Click Yes. This will inactivate the inventory location.