Always upload into the public-html directory or your website will not work!
The public_html folder is the top level of your domain's directory tree, your root web space directory. All the files that you want visitors to see must be put inside it. You can create as many subdirectories within that folder as you need/want there. You could upload a file named "image2.gif" to your public_html directory and it would be viewable online using the URL http://yourdomain.com/image2.gif