ONE DRIVE STORAGE PROBLEM

Hi all, I am new to One Drive 1 TB subscription and am a bit confused about the whole thing.  I bought it so I could put everything up in the cloud and free up my (C) Drive but something doesn't seem right. Here is what's going on;

My laptop shows that (C) Drive uses 198 GB which is almost all I have.

Under users, I have two listings that have activity;

1) CA, shows 276 GB and size on disk, 37.7 GB - The largest file in the group is One Drive with 266GB.

2) cam93, shows 279 GB and size on disk 99.7 GB. - The largest file here is Documents with 276 GB.

So, if all of my stuff is in One Drive, why is it taking up so much of my hard drive space?  Did I install it incorrectly? Your help would be gratefully appreciated.

Thanks