org-directory is a variable defined in `org.el'.
Its value is

Directory with org files.
This is just a default location to look for Org files. There is no need
at all to put your files into this directory. It is only used in the
following situations:

1. When a capture template specifies a target file that is not an
absolute path. The path will then be interpreted relative to
2. When a capture note is filed away in an interactive way (when exiting the
note buffer with `C-1 C-c C-c'. The user is prompted for an org file,
with `org-directory' as the default path.

You can customize this variable.