What it offers
Version history stores earlier states of a file so you can inspect or restore one after an unwanted edit, corruption or accidental overwrite. It differs from a deleted-file recycle bin: the file usually still exists, but its current contents are wrong.
Example
A collaborator removes a page from a document. In OneDrive, open that file's Version history and choose the state before the edit. Microsoft says the selected version becomes current while the old current version remains in the list. Its
instructions explain the control.
The limit
Version history depends on the provider's retention and your access to the account. It is not an independent offline backup. Before restoring, save a copy of any later legitimate work so you do not lose useful changes while fixing one mistake. Confirm the restored contents rather than trusting only the timestamp. If the file was shared, tell collaborators which version became current so they do not overwrite it again.