Click on it to go to HOME folder, where there are shortcuts to the default folder (platform specific), system folders (drivers, etc.) and favorite folders.
path of current folder
Click to input a new path directly. Right-click to add it to refresh contents or add folder to favorites.
contents of current folder
Here folders and files are listed contained in the current folder. Double-click on any of them to open them. Right-click on a folder to add it to favorites. Right-click on a file to load the file into the project or delete the file.
Files with .frg extension can contain a whole project (gray color) or a layer (color depends on layer type). Files with .png and .jpg extension are loaded as canvas image.
At the bottom of the file broswer you can switch which type of files are visible in the browser.
When in the HOME folder, click on a favorite folder to remove it from the favorite folder list (it does not delete the folder from the drive).