Are they interchangeable, I don't understand what adding "Stand" does to "Ort" that makes it a compound word that is different from "Ort".
The difference between both is probably best described by translating them into a similar pair in English:
Ort – place
Standort – location
Two examples you might come across in daily life:
Teile deinen Standort in Whatsapp. (Share your location in Whatsapp.)
Ich war schon an diesem Ort. (I have been to this place before.)
Of course you could say: "I've been to this location", but I would argue it's not as widely used. However, in German you wouldn't say "Ich war an diesem Standort" (except when talking about a military or a business context).
The difference between "Ort" and "Standort" is mostly one of perspective. "Ort" is a general term for a place. "Standort" has a narrower focus on a place as the location of something else.
For example, in
Sie hatte den Ort oft besucht.
"Ort" denotes a place in and of itself.
Sie kannte den Standort der neuen Fabrik noch aus ihrer Kindheit.
"Standort" defines the place by saying it's the location of the new factory.