The battery usage is just a projection based on recent usage. It won't know whether your wifi is currently on or off.
Actually, that IS an indication of WiFi connectivity. Mine shows a broken bar there, I believe related to when I was traveling from home to work.
For the OP, go into your settings, go to location. Tap the overflow menu (3 dots top right corner)and tap scanning. You can disable WiFi scanning for location services there. This may improve your situation but might reduce the accuracy of your location information.
I see the same thing.