Instead, let this be your internal and high-speed storage device. But make sure this is not an external connected hard disk.Click on the “ Browse” button to change the location as per your storage requirement.By default, this is the first scratch disk (storage disk) displayed in the “Preferences” > “Media Storage”.
“Cache Files Location” is your optimized media location. Click on the “ Master Settings” and scroll down till you see the “ Working Folders” section (immediately below the “Optimized Media and Render Cache” section.). 
Click on the bottom right corner cog wheel – the “ Project Settings” (short cut is “Shift + 9”). Location of Optimized Media in DaVinci Resolve? If you want, you could leave the default option for “Optimized Media Resolution” which is “ Choose Automatically“, or select the ones based on your requirement – keeping in mind the storage space availability, color grading, VFX, etc. Choose the corresponding ones displayed in your MAC. Or, if you want to save space and quickly generate the optimized media, select “DNxHR LB”. (You could choose high-quality ones like DNxHR HQX or DNxHR 444 – HDR – based on your storage space availability and color grading preferences.) Choose DNxHR from the dropdown against “Optimized Media Format”. Click on the “ Master Settings” and scroll until you see the “ Optimized Media and Render Cache” section. To choose the desired optimized media format, click on the bottom right corner cog wheel – the “ Project Settings” (short cut is “Shift + 9”). 
But do keep in mind that, these formats take up a lot of space in your storage disks. They are highly efficient and processor-friendly formats that do not strain your computer resources. In DaVinci Resolve, the best optimized media formats are DNxHR (Windows), ProRes (Mac), and Uncompressed 10/16 bit. What is the Best Optimized Media Format in DaVinci Resolve?
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