See You can also password-protect document inside of apps such as Pages, Numbers, Keynote, Microsoft Word, etc. You can also create a password protected disk image. You can put them in an encrypted zip file. Files and folders on iCloud drive are still just files and folders. If you still think you need to put another layer of protection on those files, like maybe you have an assistant that also has access to your iCloud password, then you can do the same things you do with any files. So think about how anyone else would get to see any of your files in iCloud Drive. You can even have everything in your Mac Desktop and Documents folders automatically available in iCloud Drive.
And when you make a change, the update is made across all your devices. You can see them on your Mac with your user account password and your iOS devices in the Files app, but that is protected by your passcode and/or Touch ID or Face ID. iCloud Drive lets you organize your files with folders, rename them, and tag them with colors. There’s no way for Apple to read them and no way for anyone else to get to them without your iCloud password. Your files in iCloud Drive are already encrypted.
