There are two options for using a second display. The first is called Mirroring. Its disadvantage is that the resolutions available for the second display must also be possible for the built-in display. The picture is replicated, which can be a distraction.
The second option is activated when Mirroring is unchecked. It is called "Extended Desktop". The pixels of the second display are used to extend the built-in display along an edge you can specify in the
| Arrange | pane that appears when this option is active. The external display can be specified anywhere (up down left right) from the built-in. The mouse moves freely across the boundary between the displays, and windows can be dragged and dropped on either display or split across them.
The tiny MenuBar can also be moved to the external display to designate it as Primary (when present). This would allow you to ignore the built-in whenever you choose. If the external is present the important stuff will be there, and the built-in will just show a copy of the desktop background.
My son used his in a slightly different way. He put the external up on about four-inch blocks, then opened his MacBook below it. He then used both screens at one to have lots of windows open.