How to save locally not to onedrive in Office365 for mac?

You might try asking your Office 365 question in the Office 365 forum where the Office 365 gurus hang out. http://answers.microsoft.com/en-us/mac/forum/macofficeo365?tab=Threads

FYI, OneDrive is Microsoft's cloud storage.

In the File>Save dialog for all Office 2016 programs, there is a button in the lower left corner called On My Mac. Click on that to save to your hard disk.

I just started using a new MacBook today after years on a PC. When I click the "On My Mac" folder, it gives me a number of top-level folders. I am trying to save to a folder on Dropbox, but I only see the Dropbox folder under Favorites my no option or method to scroll to a Dropbox subfolder. Is there a way to scroll to a subfolder?

Just to the right of the box where it says "Save as" is a down arrow. Press this to get what you are looking for. Once you have done this you should always see what you want, you will not have to press the down arrow every time.