What it means
Windows File History can present earlier versions of a file or folder it backed up. The Restore to option writes a selected version to another location, whereas direct Restore can replace the present item at its original location.
A real-world example
You overwrote a spreadsheet and are unsure whether yesterday's or Monday's copy is right. Restoring both candidates to a temporary folder lets you compare them without discarding today's file.
What to do
In File Explorer open the original location, choose Restore previous versions, preview available versions and select Restore to for a comparison copy. Open the result before moving it back.
The distinction that matters
A version exists only if File History covered that folder and ran at the relevant time. A disconnected backup drive may make the expected version unavailable until it is reconnected. Microsoft's guide warns that replacing a current file through direct Restore cannot simply be undone.
Microsoft's File History restore steps
