You first need to identify which directories and/or files belong to your project.
Work Drive will use this path to perform operations such as the install of Buldozer or the extraction of the game data. Once created, from the Arma 3 Tools Launcher, navigate to Preferences, Settings (CTRL+E), Un-check 'Use default' and click on the folder icon to select where you want to setup your project drive and set your custom path. If you don't want to use the default directory, you need to find a suitable place and if needed, create the final directory. This is done in order to avoid any potential conflict with the updates of the tools. Since the update 0.984, unlike the previous behavior (using the install directory of the tools), if no custom directory is defined, a default one will be used in the document folder of the current user (.\Documents\Arma 3 Projects).
Otherwise, there is no need to perform these operations. This only applies if you are currently using the install directory of Arma 3 Tools as the source for your P drive.