OK, thanks. A bit of background. macOS is based on Linux, which, in turn, is based on Unix. As such, it is capable of having multiple users, each with their own account. In a true multi-user environment, all of the users can be logged in at the same time, sharing the machine resources. macOS has multiple users, but only one at a time can be active. For security, no user can see another user's data.
The types of users are Admins, who can make changes to the system (install, un-install applications, perform system functions), or Users, who can't make system changes but who can make changes to the files they create themselves. There is a third kind of user, SuperUser or Root, who has even more authority over the system than an Admin, but that access is very restricted and not available to the typical user on macOS.
Ok, with that background, the house icon says that that folder is yours, you own it, you control it, you can add/delete/modify anything in it. it's yours. And no other user can get to it unless you decide to share something in it deliberately. So if you create a new account on your system and then log into that account, you'll see the house icon for THAT account, but your current account will just look like a regular folder, but with the "do not enter" sign on it to say "you don't own that folder!"
The organization of your home folder is entirely up to you. If you have documents in the home folder that should be in your Documents subfolder, feel free to move them there. They are yours, you have full control over them. Note that one of the folders in the Home folder is labelled "Desktop." That is where YOUR desktop is kept, with what you want on your desktop there. You don't have access to anybody else's Desktop and they cannot access yours.
If you are curious about how things are organized, open Finder and on the Sidebar look for Macintosh HD, or whatever your drive is labelled. Or, if Macintosh HD is on the desktop, open it there. You will see four folders there named Applications, Library, System and Users. If you open Users, you will see Guest, if you have authorized it, Your login folder (with the house), Shared and any other User you have created. If you try to open one of the other users, other than Guest or Shared, you will see that you do not have access to the folders within.
I would recommend that if you have not already done so, that you create a new account with Admin access as an emergency user. Put nothing there, add no software, don't change it in any way. That way if something happens to your account you can try to log into that emergency account to see if you can repair whatever went wrong. I have one, called "Master," on my system for just that purpose.
Now, for iCloud and what goes there, open System Preferences and click on the "Apple ID" icon at the top of the window. In the sidebar will be "iCloud" and if you click that, the right window will open to show what apps are using iCloud. One of the items on the list is "iCloud Drive" which has an "Options" box. Click that box and you can configure what you want to be stored in the cloud. Personally, I don't have "Desktop & Documents Folders" checked because I do NOT want my documents in the cloud. But I do allow other things access to iCloud Drive so that they can sync between my Mac and iDevices.
When you have it set how you want, click "Done" and the original iCloud window re-appears. Below the list of things using iCloud will be a checkbox labeled "Optimize Mac Storage." If you check that, then to save drive space the system will move items from your Home folder to iCloud Drive, leaving behind just a pointer to where that file is actually stored (in the cloud). I think most of us here would recommend against checking the box. The challenge with it is that it is easy to accidentally delete things from the Cloud, thinking you have it on the local machine, when in fact you do not have it there and it's gone, forever.
So, that's a long explanation of a short question. Hope that helps some.
