Create a top-level folder
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Right-click on your email address in the left folder menu and select New Folder.
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A new folder called Untitled Folder will appear at the bottom of your list of folders. It will be highlighted and ready for you to type in a name. You can also rename it by right-clicking it and selecting Rename Folder.
Create a nested folder
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Right-click on a folder in which you want to create a nested folder and select New Folder.
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An arrow will appear to the left of the folder, click it to drop down into the folder and see the new Untitled Folder you just created.
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You can rename it by right-clicking it and selecting Rename Folder.
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You can also move the folder by clicking and dragging it to your preferred position and then letting go of the mouse button.
Delete a folder
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Select the folder you want to remove and click the Delete button in the ribbon. You can also right-click the folder you want to remove and select Delete.