Ministrel wrote:
. . .
'do you wish to install on a different location; (or something like that) during installation of a new software or download.Is it asking about an external hard drive?
Yes, that's exactly the option it's giving you. Sometimes folks will have another partition on their internal HD with a different version of OSX, and/or often they'll have a "bootable clone" on an external HD, as a backup. Some will install updates and new apps to the clone first, to make sure everything's ok, before putting it on their main OSX volume.
By the way, don't put Apple apps in different folders; leave them in their original location (either /Applications or /Applications/Utilities). Some won't work if they're elsewhere, and won't get updated by Software Update unless they're where it expects them.
And be careful about putting other apps in other places, too. Some, especially ones that you just drop, are fine, but some others, especially ones that come with their own installers, won't work properly anywhere else and/or won't be updated.
If you need to organize them differently, leave the apps where they are, and put
aliases to them wherever you wish.