The SD card in the drone is the only location your high quality media will be saved. The
SC can, in addition, record low quality “cache” which is basically just a screen recording of the flight while recording a video. These have limited use.
You can use cache files to play back the recordings you’ve made in the field to make sure you’ve got what you wanted rather than needing to download the files or keep the drone on. Cache files don’t look terrible on a small screen and so they might be ok to send to someone quickly. Much quicker than downloading and editing on a computer. If the quality isn’t something you care that much about cache files are much easier to handle and take much less work.
For the first 4 months I had my drone I didn’t know any better and was sending cache files to my friends and family and they all thought the quality was great. When I figured out what I was doing I started sending the high quality to them and they were blown away.
So if you don’t care about using the highest quality the drone can provide cache files might be ok but for video or photography enthusiasts using the cache files for anything but reference is basically sacrilege