Yes the My Cloud works with Windows 10. See the Compilation of Windows 10 Methods, Steps and Solutions thread tacked at the top of this subforum for various solutions people have used to fix Windows 10 issues, if you are experiencing them.
Generally when making a Smartware backup of a PC it creates a subfolder within the Smartware Share/Folder on the My Cloud and any updated files that are backup by Smartware are saved into that share/folder.