When you import your photos and videos into 'Photos', they are stored in and copied to the Photos Library. You can store photos and videos outside the Photos library in a folder on your Mac or on an external drive. If you store them outside the Photos library, then also you can view them in Photos. The photos and videos which are stored outside your Photos library, they are known as 'Referenced Files'.
To store imported files outside the Photos library, choose 'Photos' app and select 'Preferences' option. Click 'General' and deselect the 'Copy items to the Photos library' checkbox. Now, when you import photos and videos, Photos leaves the files in their original location and accesses them as Referenced Files.
Quick Tip to Keep your Photos Safe
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