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OneDrive offers an encrypted file storage solution. Your files are encrypted during travel (downloading / uploading) and while at rest (you’re not interacting with it). But what does it mean to be encrypted?
You can compare an encrypted file to a secret message you are sending to a friend. Beforehand, you both decided on a cypher that you will use to scramble your secret messages. Now, when you are finished writing your secret message to your friend, you scramble all the words using the cypher. When they receive the letter, they use that same cypher to unscramble, or decrypt, the message. If anyone were to intercept the letter, they would have no idea what it says.
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