Basically, treat this folder just as you would a network drive. You can also copy and paste files into this folder and they will be synced up to your Google Drive. You can double-click on Google documents and they will open in a browser window, just as they would if you were using the browser interface to Google drive.
You can double-click on a Word file and it will download the file immediately and open it in Microsoft Word. They appear to be local to your machine, much like a network drive such as your H: drive, when logged in to a university computer. So the files are actually located in your Google Drive in the cloud. With Drive File Stream, instead of storing files locally and syncing them with Google Drive, files are streamed on demand as needed. On Mac computers it appears as a link under Devices in Finder.
Google Drive File Stream works differently. That means that every time you added files to Google Drive, it consumed more of your local disk space. You've also been able to access them using the Google Drive desktop application, which synchronizes files between Google Drive and your desktop computer. If you've used Google drive at all, you know that you can access your files through a web browser.
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