With OneDrive Files On-Demand, you can get to all your files in SharePoint Online without having to download them and use storage space on your device.

Turn on Files On-Demand in OneDrive

  1. Select the white or blue OneDrive cloud icon in the Windows notification area.

    OneDrive SyncClient with blue cloud and white cloud icons

    Note: If you’re on Windows 10, your computer already has the OneDrive desktop app on it, but you'll need to turn on Files On-Demand in OneDrive settings.

  2. Select Settings OneDrive settings with gear icon .

  3. Select Settings > Save space and download files as you use them.

Work with files in Files On-Demand

When Files On-Demand is on, you’ll see new status icons next to each of your SharePoint files. You can now copy or move files from your computer to SharePoint Online right from your file system.

Conceptual image of an online only file

Online-only files

Save space on your device by making files online-only.

These files are only available when you're connected to the Internet, but don't take up space on your computer.
Conceptual image of a locally available file

Locally available files

When you open an online-only file, it downloads to your device and becomes locally available.

You can open a locally available file at anytime even without Internet access.
Conceptual image of an always available file

Always available files

To make a file always available, even when you're offline:

  • Right-click it and select Always keep on this device.

To change a file back to an online-only file:

  • Right-click it and select Free up space.

Source: Microsoft