The office / remote scheduling for Outlook (and Teams) is great and has come a long way.
Does not overwrite previous working hour schedule which is essential
Allows changing work location (office / remote) for a single day when needed
IE Working remotely when you usually work in the office
However, it does not allow changing working hours for a single day when needed (eg you have taken the afternoon off and want others to know you are not working your usual hours that week.
Might also be good to implement more advanced options in the backend (in the future) for organizations to set-up more work locations if needed. Eg On Vacation - Airplane icon, specific areas (country, office locations, lieu, etc). These would be hidden but available if orgs wanted to use them or customize them.
Thank you for this Work and Location Schedule feature suggestions. These are really great enhancements.
I suggest that you share this information on Microsoft's Outlook feedback portal. This way, other users can vote on it too. If you'd like, you can also share the link to this thread. You have my vote, and I hope your suggestion gets implemented soon!
If you find this information helpful, please mark it as the best response, which will assist others with the same question.