Hi there phyllisrempe,
We're happy to help. If you select the option to remove a downloaded album, it removes it from the device you're using. If you delete an album in iTunes, you'll see the option to delete it from your library or from the computer entirely. Have a look at the information below:
Delete songs and albums
1. In the iTunes app
on your PC, choose Music from the pop-up menu at the top left, then click Library.
2. 
3. Click the item to select it, then press the Delete key.
4. Click Delete [item].
5. Do one of the following:
* Remove the item only from your iTunes library: Click Keep File.
* Delete the item from your computer: Click Move to Recycle Bin. The item is removed the next time you empty the Recycle Bin.
You'll find this information here: Delete songs and other items in iTunes on PC - Apple Support
Take care!