At present, in the reactive power optimization planning for distribution network the methods such as sensitivity analysis and so on are utilized to determine the location, where reactive power compensation devices are installed. In traditional sensitivity analysis method the pre-compensation nodal sensitivity is used to choose the location for reactive power compensation, so it depends on the pre-compensation power flow and the chosen compensation locations are frequently concentrated upon the branches with heavy load, and it leads to the overlap of compensation ranges and possibly the effect of reactive power compensation is not the optimal. For this reason, a method to calculate the second order network-loss reactive power sensitivity matrix is proposed, and on this basis a new method to choose the location for reactive power compensation in distribution network is given, in which the impacts of the compensation capacity of the compensation node selected in the latter on the sensitivity of the compensation node selected in the former are considered. The effectiveness of the proposed method is validated by simulation results of a 28-bus distribution network.