There are two views available in the Documents tab:
Grid View - View of the thumbnails for the documents and folders. Shows the current folder whose contents are shown in the view.
Tree View - Shows the hierarchical document tree with the top-level items showing first. You will be able to expand/collapse folders.
Users will need view permissions to view document entities. Depending on the settings of a user's project permissions, they may be able to view all document entities, or just a subset of them. Folders and public files are viewable to any users with view access to the Documents section. Entities specifically shared to a member will be viewable to them.