The ECU "listens" to the knock sensor at the same crank position on every power stroke for each cylinder. There are "sensitivity" tables in the ECU for each cylinder because each cylinder sounds different, based on where the knock sensor is located. Moving it to another place on the block will obviously throw off these sensitivity values, which could make it either do nothing, or hear what it thinks is knock and pull timing all the time. If you take it off and put it in a quiet place, it definitely won't hear knock, and therefore the ECU won't pull timing, but you won't have anti-knock protection.