How much distance does $0.001^\circ$ in latitude or longitude represent?
I don't understand the last sentence about decimal places, but I can tell you about the relationship between lat, long and distance.

Over two centuries ago, the meter was defined as one ten-millionth (1/10 000 000) of the length of a quadrant along the Earth's meridian; that is, the distance from the Equator to the North Pole. So, for latitude the number of degrees from the pole to the equator is $90^\circ\!$, and the number of meters is 10 million (or 10,000 kilometers). That means $1^\circ\!$ of latitude is $10,000/90 = 111$ kilometers, and $0.001^\circ = 0.111$ kilometers or $111$ meters, essentially an American football field plus both endzones.

The total length of the Equator is about equal to four times the distance from a Pole to the Equator. (Slightly more because the Earth's figure is a little oblate, like a slightly flattened ball.) Think of a great circle going from the North pole, to the Equator, to the South pole, to the Equator on the opposite side of the world, then back to North Pole ($360^\circ\!\!$ of a circle). That would be (almost) equivalent to the great circle ($360^\circ\!\!$ of longitude) of the Equator. So, at the Equator, $0.001^\circ\!$ of longitude will also be $111$ meters. But...

The other circles of latitude are smaller than the great circle of the Equator, yet still have $360^\circ\!$, so those degrees cover less than $111$ kilometers.



In fact, the size of a degree of longitude as a function of latitude scales as the cosine of the latitude. So $0.001^\circ\!$ of longitude change at $30^\circ\!$ latitude would be $111 \times \cos (30^\circ\!) = 111 \times 0.866 = 96$ meters.