Create a top-level folder
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Select a folder at the same level where you want to create the new folder.
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From the Home tab on the Ribbon, click the New Items button, and then choose Folder at This Level.
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The new folder will appear as Untitled Folder, with the name editable. Re-title it by typing the new title in the text box.
Create a nested folder
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Select a folder in which you want to create a new folder.
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From the Home tab on the Ribbon, click the New Items button, and then choose Folder.
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The new folder will appear nested in the folder you selected in step 1 as Untitled Folder, with the name editable. Re-title it by typing the new title in the text box.
Delete a folder
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Select the folder you want to delete by clicking on it to highlight it.
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From the Home tab on the Ribbon, click Delete.
*This article was leveraged from the Microsoft support.office.com website
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