Hello, thank you for reaching out to Microsoft Q&A.
Just to confirm, when you mentioned 117 GB RAM, do you mean the local storage (disk space/SSD) on your laptop, or the system memory (RAM)?
I think you are referring to the local disk (C: drive) where files are stored, not the system RAM.
Understand the difference here: (Local Storage SSD vs OneDrive Cloud storage)
OneDrive is a cloud storage service (backup storage).
For example, if you have a set of pictures on your local drive, you can back up or sync the pictures folder to your OneDrive. In a situation where the local disk (SSD) is damaged, and the files cannot be recovered, you can always restore these files from OneDrive since you have a backup. Depending on your OneDrive storage plan, you can store your files there. If you have 1TB of storage on OneDrive, you can save files up to the limit.
If you right-click the OneDrive icon on the taskbar, select Settings > Backup and Sync> Manage Backups, you will see the folders backing up your OneDrive. If you add any files to that folder, the files will be automatically synced to OneDrive.
If you don't want those files to consume your local storage (SSD space), you can enable Files on Demand. That is, the files will be uploaded to the cloud and will not take up space on your computer.
For reference, see Save disk space with OneDrive Files On-Demand for Windows
To enable files on demand, in the Sync and backup section, scroll down and select advanced settings. Under Files on Demand, select Free up disk space.
If you open any files, they will be downloaded to your computer and take up space.
If you have any questions or doubts, let me know. I will help clarify it for you!