Google Play Services required permissions
Google Play Services is kind of a "service provider" for other apps on your device. A look into our google-play-services tag-wiki will give you some details and explain some of the permissions this app requires. For example it requires access to your location as it offers location services to other apps.

If you'd disable this, several of your apps will probably no longer function the way they did before. Some apps won't care. But especially other Google Apps will complain (Gmail and Google Maps definitely will). As the Settings app is not affected, you can try that out (if the effect is too strong, you can always revert your change).

On the other had, you could also try revoking some permissions from the Google Play Services app, if your Android lets you (it's a system app, so depending on your device and Android version you might not be able to do that).