iCloud
Hi,
Do I need to have internet connection to access any files I have saved on the iCloud?
If so, does that mean I cannot work on my documents offline?
MacBook
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iCloud Drive usually keeps a local copy on your Mac. An exception to that can happen if you have the Optimize option turned on and space is low on your Mac. See the following from Add your Desktop and Documents files to iCloud Drive - Apple Support
If you need more space on your device, iCloud Drive can help. On your Mac, go to Apple menu 
> System Preferences > iCloud. Next to iCloud Drive, click Options and turn on Optimize Mac Storage. Then your Mac keeps all of your recent files on your computer, but keeps your older ones only in iCloud, ready for you to download when you need them again. If you want to free up more space on your Mac, follow these steps. On your iPhone, iPad, or iPod touch, you can search and browse files from all of your devices and download them only as you need them.