New customer here and confused. My Passport for Mac questions

Your external hard drive won’t perform any particular action on its own as it is governed by your computer. You can drag and drop / copy and paste files into it from most folders in your system in order to have a secondary copy. You can also link your hard drive to Apple Time Machine:

http://www.apple.com/support/timemachine/

Once a Time Machine backup is completed, you will see an encrypted Time Machine sparsebundle file that can only be (Normally) accessed through Time Machine in case of an emergency.

Regards,