Handheld GPS devices are programmed to assume you're on the surface of the planet, so it would probably suggest that you're on the ground directly below where you're moving.
This is a required assumption when you're only locked into 3 satellites, the minimum required to give your location.
One satellite gives you a sphere.
Two satellites gives you a circle.
Three satellites gives you two points on that circle, one of which is on the surface of Earth and one is either out in space or way below the surface, so an assumption is made.
With four satellites your position is pretty much nailed down and usually you can lock on more than four, but if the result is you being in space then it may or may not return that position.
But yes, the GPS will work on the ISS. The satellites are still within range.