This warning message asks you if you want to choose a different storage location.
#ARCGIS 10.6 LABELS LICENSE#
You need an ArcGIS Desktop Standard or ArcGIS Desktop Advanced license to convert to feature-linked annotation. Then, if you move the feature, the annotation (label) moves with it if you delete the feature, the annotation is also deleted and if you change the attribute of the feature that the annotation is based on, the text of the annotation changes. Storing feature-linked annotation in a geodatabase creates a relationship between the annotation and the feature it annotates. If you choose geodatabase annotation, you also need to decide whether to create standard or feature-linked annotation features. Geodatabase annotation is stored as an annotation feature class in a geodatabase. You can convert the labels to an annotation group from any layer with a geodatabase, coverage, shapefile, or CAD feature class data source. Map document annotation is stored in an annotation group within the map document. When you convert labels to annotation, the main choice is whether to store the annotation in a map document or in a geodatabase.