What it means
Edge can allow or block a particular website's camera or microphone request. Windows also controls whether Edge and other apps may reach those devices at all. A site can fail even with Edge Allow if Windows blocks the browser, and blocking one Edge site does not stop a separate desktop conferencing app. Microsoft's privacy guide explicitly distinguishes these layers.
A real-world example
A meeting website has Camera set to Allow, yet its preview is black. The user assumes malware has seized the camera. In fact, the Windows privacy switch for desktop apps or the chosen device in the meeting app may be the issue.
What to do
Check the site's entry in Edge Site permissions, then Windows Privacy and security, Camera or Microphone. Test a known meeting and inspect the indicator while the tab is open and after closing it. Change only the layer that disagrees with your intent.
The distinction that matters
Allow does not mean the camera is recording continuously; it means the site may request access when its page is active. Blocking Windows camera access can affect many apps. Neither control proves a microphone light or icon came from that site, so inspect other tabs and running desktop apps before drawing conclusions.
Microsoft camera and microphone controls