What is ChunkParserI in nltk.chunk ? What exactly it has been called for?
Parsing is the process of decomposing a string into it's constituent symbols (if the string is a word or a sequence of characters) or syntactic components (if the string is a meaningful textual entity like a short story, a scientific abstract or a sentence). In an NLP context, when one talks about parsing, he/she usually refers to the latter interpretation. 

Chunking (in an NLP context) is a specific form of parsing in that it extracts groups of words in so-called 'chunks'. These groups of words or chunks  are 'meaningful short phrases from the sentence (tagged with Part-of-Speech). Chunks are thus made up of words and the kinds of words are defined using the part-of-speech tags. One can even define a pattern or words that can't be a part of chunk and such words are known as 'chinks''1. The latter can be defined with chunking rules.

I assume the code you posted comes from "Natural Language Processing: Python and NLTK" by Hardeniya et al.2? From there i can find that the LocationChunker class 'starts by constructing a set of all locations in the gazetteers corpus. Then, it finds the maximum number of words in a single location string so it knows how many words it must look ahead when parsing a tagged sentence.' (cf. Chapter 5, p. 319)