icloud photos albums and folders

See this article https://support.apple.com/en-in/guide/photos/pht211de0d6/mac

Create a folder

1. In the Photos app on your Mac, click My Albums in the sidebar.
2. Choose File > New Folder.
3. Type a name for the folder.
4. Drag albums into the folder. 
5. Tip: To quickly create a folder, Option-drag one or more albums onto another album. Photos places all the albums into a new folder. You can also drag other albums into the new folder.

A very less privileges in iCloud server account , send your views at https://www.apple.com/feedback/icloud.html