Upload a File
On your file settings page, clicking the [Add] button will open the File Picker. Click on Upload a File in the File Picker to upload files, while setting the author and licensing of the file.
Private Files
This is a special storage area for each Moodle user that you will be able to access from any of your course sites. It's a great place to store files commonly shared amongst various courses you teach in Moodle.
Server Files
Server Files will allow you to access the file storage for other courses that you have access to in Moodle. If you suddenly decide that you want to add a file already used in another course site, you can go to Server Files > System and then navigate to your other course file to retrieve the document.
Repositories
It is possible for the Moodle administrator to enable repositories or other locations from which to pull content. Dropbox, Flickr, Google Docs and Youtube are examples of these.