This new feature backs up files stored in your Libraries, Favorites, Contacts, Desktop and other locations you want backed up. It also keeps interim versions of files so that you can retrieve previous versions of a file. You'll need storage media such as a USB drive to back up your files to, or you can back up to local network storage.
To turn on File History, type "Control Panel" at the Start screen, click the Control Panel icon that appears, search for "file history" and click the File History link that appears. Click the "Turn on" button and make any selections necessary, such as which drive you want to back up your data to.