Depending on whether an album is yours or your friend's, you can perform different actions with an album and the photos inside it.
Your own albums appear under the heading Your albums in your photo library. Your albums are created when you upload, move, or copy photos.
The albums your friends have shared with you appear under the heading Friends' albums within your photo library. Only the person who originally created an album can rename it or rearrange and edit the photos within it. Also, please note that you can't upload or move your own photos into a friend's album.