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After clicking the button a dialog for the new folder opens. Since folders do not have any attribute other than name and description, In the dialog that opens, you need to fill in the folder name and folder description. This will create a folder and immediately add it to the subcomponents list.
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Creation of
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Jira Project Components
You can create a real Jira project component from JIRA's own "Project Component" screen or directly inside the Subcomponents screen. To create a subcomponent inside the Subcomponents screen press the Create Component button next to the "Create Folder" button.
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A new dialog will be opened which allows you to enter project component attributes. Other than the project component name all other attributes are optional.
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Creating a component this way also adds this component to JIRA's own Component list. Even if you uninstall the add-on later the created component will remain. Actually, this is a just shortcut for creating actual JIRA project components. The new newly created component appears both in the Subcomponents page and in the JIRA itself.
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