Gypsum helps soil better absorb water and reduces erosion. It also cuts down on phosphorus movement from soils to lakes and streams, but for a small area in your lawn, your best bet may be to use a fertilizer that does not contain phosphorus, rather than apply gypsum.

Many Minnesota soils are high in phosphorus and the usual recommendation is to use fertilizers containing nitrogen and potassium for a number of years until the phosphorus levels come down.  See

https://extension.umn.edu/yard-and-garden-news/you-might-be-over-fertilizing-your-garden

Gypsum helps if you have compacted soil or it contains too little calcium or sodium. Other than helping reduce the amount of phosphorus in the soil that eventually ends up in waterways, it will not help your soil.  The way to reduce the phosphorus concentration is to add the other two major nutrients - nitrogen and potassium - to create a balanced soil.  If you have heavily compacted clay soils elsewhere in your yard, gypsum can make them more porous and better able to absorb rain.