Albums "contain" pictures. Folders contain Albums. Folders can also contain other folders.
Here, the "Plantation" visit is inside the New Orleans Trip that's inside December that's inside 2024.
There are other albums in each of those folders, of course. You can also see a "2024 all" Smart Album in 2024. Smart Albums are great for gathering pictures with dates, or locations, or people, etc, in common. Unfortunately, Smart Albums don't work in iOS or iPadOS, so I often gather pictures with Smart Albums and then copy those to regular albums so they'll show on my phone and iPad.
I sort pictures by date of course, but I also have pictures in other types of folders.
The Louisiana folder has all the pictures in the NOLA trip, but here they are with other Louisiana pictures. There are also folders for New Orleans, New Iberia, Baton Rouge, etc. Pictures can be in multiple albums, since albums are just lists of pictures to see together. A picture can be on multiple lists without taking up any more space.
Does this work for you?