If this MacBook Air is running Catalina, but cannot update past it, that would identify it as being an 11" or 13" Mid 2012 model. Those have SSDs, 4 or 8 GB of soldered-in RAM, USB 3.0 ports, and non-Retina screens. They can drive an external display with a resolution of up to 2560x1600 pixels over their Thunderbolt 1 port (which has the same connector as a Mini DisplayPort and can double as one).
At some point, you might want to consider replacing it with a newer Mac. A modern Apple Silicon MacBook Air or MacBook Pro could offer many upgrades, including
- A Retina screen
- A much faster CPU and GPU
- A much faster SSD
- More RAM
- Compatibility with modern versions of macOS and modern Mac applications
- Modern USB-C / Thunderbolt ports that support modern docks and hubs
- Better support for external displays