The principle of this window is as follows: you open the desired folder or archive through the built-in explorer and perform the necessary operations with them. Opening the archive by double-clicking on it, you will see the main WinRAR interface, which contains all the same functions described above. The second option allows you to set a password for unpacking the archive, choose a higher compression ratio, choose the archive format, etc. The first option is fast and is suitable for most cases. To create an archive there are also several options: archive with standard settings, or manual configuration of all parameters of the archive.
If there are other files in the current folder, it is better to unpack into a new one, as the files are mixed. You can extract files from the archive to the folder of the same name or to the current folder. From here you can unpack the archive and create a new one. 90% of the interaction with the program functions is usually done through the context menu (right mouse button). Supports all popular formats, is built in the context menu and has wide settings of created archives. WinRAR is a program for creating and unpacking archives.