This is a question for pilots. Does a waypoint signify something specific on the ground? Or does it refer to an abstract virtual location?

Take for example this waypoint: UGAAA. It can be found here: http://jetrecord.com/fixes/UGAAA

Is there something on the ground there? An antenna? A radar radio? (It seems like the middle of a cornfield)

Or is it a virtual (i.e. not physical) coordinate that was selected on the basis of something or another? If so, on what basis? If you look at the coordinates, the numbers are out to the 4th decimal place, so it seems like it isn’t the crossing of latitudes or longitudes.

I understand the role of a waypoint – just curious about how they are chosen.