Setting can create a mood for your book. I think of Lonesome Dove as a great example. I felt like I had grit in my mouth as I read it! And on the opposite spectrum there's The Martian. It had me concentrating on my breaths as it took me through a world with no oxygen.
On the same questionnaire Amazon sent about my cover, they asked about my setting. Setting is important to a publisher not only to determine mood and tone but also to determine your audience, originality, and genre expectations.
Here is the question and my answer:
What is the setting of your book?
Note geographical region, year/era, season, and any defining characteristics of the setting.
Southern Louisiana, August 2018, small town There is a deep bayou that runs next to the town with a bridge going over it. Tall levees flank both sides of the bayou. One side is groomed, one side is wild and unkempt. Large oaks with Spanish moss, an old historical home, a diner, a Main street with clapboard stores - most businesses boarded up It's hot and humid and the town is a short drive to the Mississippi River. It's neighboring town is a tourist hot spot but Broken Bayou doesn't reap those rewards. It's a "drive-through" type of town, most people never stop there, unless pulled over for speeding. The closest big cities are Baton Rouge and New Orleans.