local storage by default, icloud by choice

If you use iCloud Drive, any file that you store in iCloud Drive is also on your Mac. If you have Desktop and Documents enabled, those files are also available on your Mac and in iCloud. So, turning off the features will not erase any files.

If you have elected to optimize Mac Storage (system preferences > {name} > iCloud), then your oldest/largest files may have been offloaded only to the cloud if space was needed on your Mac. Those files (designated with a cloud icon) can be downloaded again to your Mac.

So, first check if you have the optimized setting turned on.

If so, verify that all of your files are on your Mac

And, turn it off.

If you do have desktop and documents turned on to sync to iCloud and turn it off, your desktop and documents folders will then be found in iCloud Drive on your Mac. Turning it off results in a new desktop and a new documents location on the Mac. Simply drag those files to the "new" locations. Nothing is lost and everything always remains on your Mac.

Anything that is in iCloud is also on your computer. iCloud is primarily a synchronization service, not offline storage. If you do elect to optimize Mac storage when setting up iCloud, some of your oldest/largest files may be offloaded to iCloud only if space is needed on your device. Those can be downloaded again by clicking on the file. You can also turn off this feature if you do not need it.

Yes, you can save your file anywhere. When you click on the name of the Pages File at the top of the document, you can save the file anywhere, even outside of your iCloud Drive. In the images above, click on "untitled," and then other if you do not wish to save to a recent location.

When you save a document in Pages and it shows (pages-cloud, or just iCloud):

You're saving your file directly into your iCloud Drive. But, that is accessible on your Mac. Saving in the iCloud location places the document into your iCloud Drive folder where it remains on your Mac and is also uploaded/synced to iCloud.

The file is very much in both places. Any document in iCloud will also be on your Mac. If you elect to optimize Mac storage, then your oldest/largest files may be offloaded to iCloud only but a link is still on your Mac.

You can, of course, always choose any directory into which to save the file.

Hello, IdontFB.

We'd be happy to lend a hand with this. Please take a look here: Change Finder preferences on Mac - Apple Support. This article explains how to use Finder preferences to change options for Finder windows, file extensions, and the Trash. While there is not a set location for all files to be stored, different applications may have different settings that direct the file where to go. When selecting the "New Finder windows show" under Finder > Preferences, you will be able to choose which folder is displayed when you open a new Finder window.

You might also want to take a look at this helpful page: Add your Desktop and Documents files to iCloud Drive - Apple Support. The "Find your Desktop and Documents files on all of your devices" section offers these tips:

1. On your Mac: You can find your Desktop and Documents folders in the iCloud section of the Finder sidebar. If you add a second Mac Desktop, you can find those files in the Desktop folder in iCloud Drive. Look for a folder with the same name as your second Mac. You can also use Spotlight to search for specific file names. 
2. On your iPhone, iPad, and iPod touch: You can find the files in the Files app in iOS 11 or later. You can use any compatible app to access and edit your files directly on your iPhone, iPad, or iPod touch. If you're using iOS 9 or iOS 10, you can access your files in the iCloud Drive app.
3. On iCloud.com: Sign in to iCloud.com with your Apple ID on your iPad, Mac, or PC. Go to iCloud Drive. Double-click the Desktop or Documents folder.

If you want to use the file or make edits, just click the cloud symbol and download it to your iPad or computer. When you're done making edits, upload the file to iCloud Drive to see the latest version everywhere.

Let us know if we can help with anything else at all or if this doesn't settle your issue. Thanks and have a fabulous day!

Open Finder

Navigate to iCloud Drive

Select Pages

Those files are on your Mac locally and synced to iCloud.

That is not correct. Anything I create in Pages is only stored on the iCloud. I hate this. If I want it on my internal Mac storage I have to copy it over. I absolutely hate this. There simply has to be a work-a-round.

No, I cannot choose the directory where my Pages documents are located using the method you mention. It only lets me put them in the iCloud. Then I have to go to the Finder and manually move them back to my Mac.

I give up trying to explain this. I'm just going to purchase Office for the Mac where I gain total control over where my files go and when I want to back them up in the iCloud, not the other way around like with Pages.

WiFi is off. Syncing is paused. Any of the files in my directory can still be opened as they are all local. Any changes that I make will save locally. And, when WiFi is connected, will automatically update iCloud too.

I turned off wifi like you said. I then opened Pages and renamed a document that showed up and then I saved it. I then looked in the iCloud folder where it should be and it is not there. Where is it?

It will be wherever you saved it. The location under the name where you renamed the file. Likely in iCloud Drive > Pages, but you may have selected iCloud Drive or any other folder. If you're unsure of where you saved it, click on the name on the pages document and look at "where" for the location of the file.

Yes, I am aware of looking at the "where" dropdown at the top of the document. The problem is that it only shows me the very last folder in the path for the document. It does not show the entire path. So how can I find it then?

The only way I have found it just now at this moment is to go to the Finder and select Recent. Then I can find it in the list. This is obtuse. There is no way to know where it is using Pages.

Do you know a way that Pages can show me the actual path where the file is located?

IdontFB, I started using your thread because when I searched on this issue the problem I am trying to solve was selected in your thread. I do not run Apple's search engine or force it to decide. You just indicated that your problem is with iCloud and where does it store our documents without letting us know where it stores them. This is exactly the problem I am writing about so it is definitely related to your problem.