New site creation - what is "Directory"?

Denise Bowker

(here we go - new to LiveSite product, sorry)

When creating a new site, I'm asked for "Directory". What is that used for? Do I put the path to our root directory on the web server (I hope not) or a folder below the web server root?

The doc reads "...enter the directory of the site's home page". It's required (can't be blank) and can't start with a slash so if it's "what subdirectory below 'webroot' how do you specify no-subdir?

TS 6.7.1
LS 3.0
(ignore the signature)