Photos can be on any connected drive, internal or external or network. As far as I know, photos cannot be in the cloud.
Your Lightroom catalog must be on either an internal or external drive (not a network drive).
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You can indeed do that as dj already remarked but I want to warn you for a major problem with the MyCloud devices. They have a extraordinarily badly written media scan program running on them that will make it extremely slow when you're moving images and video files onto it. It is hard to explain how extraordinarily badly written it is. If you only move a few images at a time you won't notice much but if you move a lot of large images, these devices become completely unresponsive and basically unusable. You can fix this by disabling this indexer from the command line while ssh'ing into the Mycloud NAS drive. There are some instructions here: “Improving the performance of your WD MyCloud” Lots of profanity on that post so be warned but it does solve the problem. I have one of these at home and dump family pictures on it for everybody to enjoy and use but quickly discovered this problem just exporting a few 100 images to it and completely locking up access to it because of this indexing program and found on the internet how to work around it. After disabling the media scanners (which can't be done from the web interface but has to be done by actually disabling the services running on the thing itself) it is a perfectly usable and affordable NAS.
Thanks for all the info. I will certainly review the My Cloud performance improvement link you provided.