Location history enables you to see the movement of friends during past 30 days. You need to subscribe premium service to use this feature. The free user can see only his history.
The orange/gray dot means that the accuracy is very low.
You may check the location service and WiFi setting on your phone. Please note that accuracy depends on many factors, such as your environment and your phone. There is moments when the highest accuracy will not be available(underground for example)