GMAIL archiving system explanation

Hello. Can someone explain very clearly what the heck is this folder for? I don’t find an article online that is clear. I did read that the archive folder holds your email from the “inbox”, but that make no sense to me.
Thank you.

The Gmail Archive folder in Apple Mail is the same as the All Mail folder you see when you access Gmail from your browser. It’s actually the only place where mail is physically stored. All the other folders contain links to the original mail which has had a label added for each other folder it has been moved or copied to. Initially, all incoming mail receives an Inbox label. When you delete the message, the Inbox label is removed and depending on your settings, a Trash label will normally be added. When you delete a message from Trash (or perhaps Deleted Items/Messages) that message will remain in All Mail / Archive. I believe the only way to permanently delete a message from All Mail / Archive is to log into Gmail with your browser and delete it there. At least that is still the way it works for me.

ok. Thank you Al. Much clearer.