Microsoft OneDrive behavior
When you perform check-in and check-out operations in Sitecore Digital Asset Management (DAM), the changes reflect in Microsoft OneDrive. This article describes the default behaviors from the OneDrive side. For detailed information about Microsoft OneDrive features, refer to the official OneDrive documentation.
Folder structure
When you connect your Microsoft OneDrive account to Content Hub, a folder titled Apps is created in OneDrive. This folder contains a sub-folder named after the app that you created in Microsoft Azure.
In this example, the name of the app is Test app:

The app sub-folder contains two other sub-folders named Checkouts and Downloads:

The Checkouts folder contains your assets checked out from Sitecore DAM. The filename of a checked-out file in Microsoft OneDrive is created by pre-pending the Asset ID with the Filename.
If the Apps folder already exists, only the app sub-folder is created and placed in the existing Apps folder.
Adding files to the OneDrive checkout folder
If you upload a new external file into the Checkouts folder, this file is not uploaded to Sitecore DAM, and it does not appear on your Checkouts page. This behavior remains true even if you perform a sync on your Microsoft OneDrive folder.
However, if you upload a new version of a checked-out asset (a file with the same name as a checked-out asset) into the Checkouts folder, the asset is updated in Sitecore DAM.
When you add an existing file in the Checkouts folder, a warning appears, and you must confirm that you want to add it as the latest version of the existing file. This new file version becomes the Remote version of the checked-out asset.
Delete checked out assets in OneDrive
If you delete an asset from Microsoft OneDrive, the file is only removed from OneDrive, not from Sitecore DAM. This reflects on the Checkouts page by an absence of thumbnail in the Remote column of the asset.
If you want to re-include this file, you must discard the checked-out file and check the asset back in to recreate the Microsoft OneDrive file.
Share checked out assets in OneDrive
You can share checked-out assets within Microsoft OneDrive. However, suppose you send a share link created in Microsoft OneDrive; in that case, usage permissions and security settings on the asset are not included because you share a Microsoft OneDrive file and not a Sitecore DAM asset.