External drive
An external drive is a drive you plug into your Mac rather than one built in. It is where Storage Studio moves folders and apps to free space on your Mac.
An external drive is a drive you plug into your Mac — rather than the built-in disk inside it. In Storage Studio it is the place your folders and apps move to when you free up space.
You choose it in Set Up / Choose External Drive… in the More menu. The window lists the drives that are plugged in, shows their format and free space, and offers a short speed test. Storage Studio only accepts a drive that really is external. Drives formatted APFS or Mac OS Extended are accepted; an exFAT drive needs you to confirm a warning first; FAT32 and network drives are refused, because they can't hold the shortcuts a move leaves behind.
Anything you've moved there can only be opened while the drive is plugged in.
See also: Choosing an external drive · Setting up your drive · When your drive is disconnected