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When you click Files from Course Navigation, you are taken to the Files Index Page. This page is where you can find all of the files in your Canvas course organized in folders. The top-level folder is titled with the course name. By default there are no subfolders. Every file or image you add to any part of your course will be uploaded to the Files Index Page.

At the top of the Files Index Page you can find [1] a box labelled Search for files. You can use this box to search for files within the course. You can also find [2] + Folder for adding subfolders. Finally, [3] Upload allows you to upload files into the course.

Lower on the page you can add files directly to your course by dragging and dropping them from your computer. You can also reorganize files within the course by dragging and dropping them into other folders.