Galleries and Folders and their content are completely controlled within the management interface. The difference between the two is that galleries contain the content (e.g., the photos, videos, and PDFs) that you are presenting while folders are an organizational aid and allow you to group up galleries and other folders by category or some other hierarchy.
See also A Detailed Description of the Options
You can delete a gallery or folder using one of two ways. Galleries and folders added by a sync cannot be removed in this way — remove the source folder and sync to remove them.
This action cannot be undone and all stored items in the gallery will be removed. All sub-galleries of a folder will be removed if it's a folder. If you have whole-library syncing enabled you will not be able to delete galleries or folders as they would just be added at the next sync.
See also Adding Files
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