Microsoft announced several new features for “The new OneDrive” in May. One of the features is to display folders in OneDrive in alternative colors. The feature is currently being rolled out for OneDrive on the web and SharePoint document libraries; see the roadmap. Some employees may see the change sooner than others.
Today, all folders in OneDrive and SharePoint are displayed in yellow.
OneDrive and SharePoint can now show you the option for an alternative folder color in the menu of a folder. A total of 16 predefined colors are possible.
The alternative colors are possible in all folders, but at the current time they are only displayed in the browser (in OneDrive on the web and SharePoint document libraries).
The colors in the OneDrive Mobile app and Windows Explorer are still in yellow.
Update 25. August 2023:
The rollout should be completed by October.