Neo4j Desktop - Difference between Database and File?

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I'm new to Neo4j. I've just opened the Desktop application. Starting a Project, the dashboard lists "Add Database" and "Add File". If data is stored in a database then what's a file? I don't get what a file does. Off hand, when I click on each (either the sample database or the sample file) they open the database browser thing so this doesn't help to understand the difference either..

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You would use Add File to reference a file with a Cypher query (or series of Cypher queries).

When you open a file that you've saved here, it will open the browser window (associated with the currently running Database) and paste the file contents into the query box.

So this is a more portable way to save important queries saved in files (such as already established scripts in Cypher) that you expect to run often or reuse/test across databases.

Add Database is used to create a new database instance (technically "dbms" would be the better term, since this doesn't have to do with multi-database features in Neo4j). You can select the version of Neo4j to use for the database, and configure and manage it as needed.