The feature is simply called “Safe folder”. And the idea is simple: lock files behind a four-digit PIN so that no one else can get access to them. The folder locks itself as soon as you move away from the Files by Google app, so no one can just switch to it and see your safe folder still open. To access what’s in there, you’ll have to enter the PIN again. Screenshots are not allowed here either, according to 9to5Google.
You may be wondering, why is something like this needed when you can just lock your phone? Google describes examples of parents sharing their phones with their children. And indeed, locking certain files behind a PIN will certainly prevent them from being accidentally shared or deleted. Safe folders are currently rolling out in beta versions of Files by Google. No date was given as to when it will be available to the public. (Source: Google via 9to5Google)