About managing schematic folders
Schematic folders reside in schematic datasets. They are used to group a set of schematic diagrams, and they help make schematic diagram storage and organization easier for you.
It is strongly recommended that you organize your schematic diagrams in schematic folders instead of keeping all of them at the schematic dataset root. When consuming diagrams through a Schematics service, performance and responsiveness are better when your diagrams are stored in schematic folders.
Managing schematic folders in the Catalog window is as easy as managing maps, geodatabases, or shapefiles. You can use the standard Windows shortcuts and drag-and-drop techniques to move, rename, or delete schematic folders.
A schematic folder in the Catalog tree is displayed with this icon next to its tree entry.