So glad to have auto backup, but it is confusing

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Every time I create a file locally on my PC, it gets automatically uploaded/backed up to The Cloud under my Microsoft OneDrive account (free when less than 5GB utilized). That's great! But seemingly, after some inexplicable period of time, Windows 10 classifies my older files as "online only". I say this because it gives a different message should I choose to delete the file. It says something like, "Deleting an online-only file eliminates it permanently from your system; do you wish to proceed, yes or no?". So if I am certain I answer Yes, but even that leaves the file in my cloud's OneDrive Recycle Bin from which it can readily be restored. And not having a local copy of each file I believe messes with my HyperLinks within OpenOffice Spreadsheets, but that's too complicated to address in this thread. (It appears to mandate an extraneous pop-up security question re am I certain I want the clicked-on HyperLink followed into an alien file; or something.)

I have trouble coping with such mysterious mechanisms as I've described herein. Could anyone provide some additional clarity for me please? Thank you kindly.
 
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I have since discovered that when I try to access any of those files which W10 has classified as "online only" I will see a pop-up progress/info box declaring that OneDrive "is downloading files". Apparently the auto-backup system -- and I still do appreciate it greatly -- favors being niggardly with my PC's physical disk space, choosing to store rarely-used data in the cloud. Well I guess.
 

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