What to do with external hard-drive?

I just got this 500gb external hard drive because a few months ago my computer just started randomly making a back-up file that is now on my local disk D. I have transferred this backup to my external hard-drive , so it it okay now to delete it off my computer?
Also what would be on this back-up?
Is there any way i can save space on my C drive as well? It's running out of space and i don't have much on this computer (mainly steam games that are un-installed to save space)
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