If you have proper permissions, you can add a folder to the current folder by clicking Add Folder beneath the table. Enter a name for the new folder. If the parent folder is not a root folder, you will also be prompted to decide how the new folder should inherit any explicit permissions from the parent. Most other folder settings will be automatically copied from the parent to the new folder.
The three inheritance options are:
Always inherit from parent: This option turns on the Inherit Access From Parent option on the new folder. This will cause the new folder to inherit existing and future explicit permissions from the parent.
Copy from parent but do not inherit future changes from parent: This option causes the existing explicit permissions on the parent folder to be copied to the new folder, but does not turn on the Inherit Access From Parent option. This will cause the new folder to inherit existing explicit permissions from the parent, but not be affected by future changes to the parent's permissions.
Clear and do not inherit future changes from parent: This option causes the new folder to be created without copying any permissions from the parent, and without turning on the Inherit Access From Parent option.