Zotero data directory
This discussion was created from comments split from: Moving Zotero Data Directory.
This is an old discussion that has not been active in a long time. Before commenting here, you should strongly consider starting a new discussion instead. If you think the content of this discussion is still relevant, you can link to it from your new discussion.
The Zotero data directory is where Zotero stores files that it manages for you.
You can also configure a Linked Attachment Base Directory and use linked files, generally with the third-party ZotFile plugin, to automatically move files to an external directory as linked files.
On the difference between stored and linked files: https://www.zotero.org/support/attaching_files#file_copies_and_links
Neither is really where Zotero "finds" your files, but I'm not sure what you mean by that. That's not related to the above at all. Is that meant to be a separate question? If so, it's better to ask in the thread you already have where use of that option was suggested to you.