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I don't think so. It's around the outside of the borderof the drawing so that when its viewed by different people, say on a conference call, they would all know what section of the drawing they were talking about.
We use the method you are talking about where I work. I haven't used it myself so I can only point you in the direction I've found. In your format select Page Setup under the file options. This will allow you to setup the Location Grid. Once you are finished you may need to select View>Drawing Display>Location Grid to show it. As far as the border on a drawing sheet, our's were created using draft entities.
Why don't you incorporate drawing zone callouts in your drawing formatborders(vertical uses letters and horizontal uses numbers)? This creates a grid that can be referenced in conversation, calling your conference members' attention to B-2, C-3, etc? This is typical, and the details can be found in ANSI Y.14.5.
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