Quick Answer
Your Photo Library is the collection of photos and videos that lives on your iPhone. iCloud Photos Library (sometimes called iCloud Library) is the same collection mirrored to Apple's servers and synced across every Apple device signed into your Apple ID. When iCloud Photos is enabled, edits, deletes, and new photos sync automatically in both directions. When it is off, your Photo Library is local only and not backed up. The Photo Library is the data, iCloud Library is the sync mechanism.
The Local Photo Library
Every iPhone has a Photo Library by default. It is the database the Photos app shows you. It contains photos you took with the camera, screenshots, photos saved from messages, photos imported from a Mac, and photos shared via AirDrop.
The Photo Library exists whether or not you use iCloud. It is stored in a system folder you cannot directly browse, and managed by the Photos app. Each photo, video, and Live Photo has metadata attached: date, location, faces, and edit history.
What iCloud Photos Library Adds
Turning on iCloud Photos (Settings > Photos > iCloud Photos) makes your Photo Library a synchronized library. Apple uploads everything to your iCloud storage and keeps it in sync with every other device on your Apple ID.
- Cross-device sync. Edit a photo on your iPhone, see it edited on your Mac and iPad within seconds.
- Backup. If you lose your iPhone, your photos are safe in iCloud. Sign in on a new device and they reappear.
- Web access. Visit iCloud.com and view all your photos from any browser.
- Storage optimization. Enable Optimize iPhone Storage and iOS keeps thumbnails on the device while originals stay in iCloud.
How They Interact With iPhone Storage
This is the part that confuses people. iCloud Photos can either reduce or increase the storage your photos use on your iPhone, depending on one setting:
Optimize iPhone Storage
Smaller versions stay on the device. Originals live in iCloud. When you tap a photo, the full version downloads on demand. This minimizes local storage use. Recommended for most users.
Download and Keep Originals
Every photo is stored locally at full resolution and also synced to iCloud. This uses the most local storage but gives you instant access without internet.
Common Confusions
"Is My Photo Library in iCloud?"
If iCloud Photos is on, yes. If iCloud Photos is off but iCloud Backup is on, your Photo Library is included in nightly backups but not synced in real time.
"I Deleted iCloud Photos. Did I Lose My Library?"
No, but be careful. Turning off iCloud Photos gives you the option to "Download Photos and Videos" first. If you skip that, optimized photos that lived only in iCloud will be removed from your iPhone.
"Why Does My Photo Library Show More Than My iCloud?"
Sometimes iCloud sync is incomplete or paused. Open Photos and scroll to the bottom to see status. A "Pause for one day" toggle exists if uploads are slowing down your phone.
Which Should You Use?
For most people, use both. Keep your Photo Library on the iPhone, turn on iCloud Photos for sync and backup, and enable Optimize iPhone Storage so you do not run out of local space. This is the default Apple intends.
Skip iCloud Photos only if you have privacy concerns about cloud storage or want to control your own backups. In that case, plug your iPhone into a Mac monthly and back up the Photo Library manually with Finder or a third-party app.