You can change the name of a folder either in the thumbnail hover view, or on the folder tree to the left of the screen.
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In your library, locate the folder you want to rename in the navigation on the left or by clicking through the folder thumbnails.
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Hover over the folder name or folder you'd like to update.
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Click on the Elipse icon to the far right.
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Click Rename Folder.
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Rename the folder and click Ok.
Further Reading:
Edit the Folder Thumbnail
Deleting a Folder
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