The Drag & Drop method is already known to many people from PC or the Android user interface. It roughly means drag and drop. To create a folder with this method, at least 2 apps must be provided for a folder.

Android 10 (MIUI 12.0)
Step 1:  Tap and hold an  app icon
Step 2:  Drag the  app icon  onto another
Step 3:  Release the  app icon  to create a folder
  1. Tap and hold an app icon
  2. Drag the app icon onto another
  3. Release the app icon to create a folder

Xiaomi Instructions
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