What is the difference between "Albums" and "Local"?

What is the difference between “Albums” under “My Music” and under “Local” in the side bar?
My Music albums seem to be mainly my Qobuz favourites and Local Albums the files on my hard disk music library.
Also there seems to be no way to create a consolidated list of all the files available to me.

My Music is all of your favorites, from Qobuz, Tidal, HRA streaming and your local favorites.

You mean having your Qobuz favorites and your local library at the same place?

Yes. In the same list of all my music.
I suppose I could just make everything a favourite.