There are two separate options on that screen.

One is "Find My iPhone/iPad" which just turns off the functionality.

The second one is "Find My network" which opts out of the mesh network. This one has a description that starts with "Participating in the Find My network..." since turning it off means you are no longer participating in the mesh network.

https://www.apple.com/legal/privacy/data/en/find-my/

> "When your device participates in the Find My network, it can both be located by the network and anonymously help locate other missing devices. You can choose to have your iOS or iPadOS device not participate in the Find My network by going to Settings[...]"