how to change local disk capacity on windows ?

Answer 1

Use Compression (not recommended)

Better to either add another Large Capacity internal Hard Drive,

Or as I do use large capacity Thumb Drives for DATA.

Alternately replace the current Drive with larger drives.

I personally installed two, 2Teribyte Drives, they are so cheap now, and still use USB external drives and Flash Drives for specific storage.

Answer 2

Replace the drive with a differently sized one. If you want to change the available disk space, either delete some stuff (more free space) or add some stuff (less free space).