System data of ~85 GB is not a lot as compared to many users.
“System Data” (or “Other”) storage is an amalgam of files that don’t easily fall into the defined categories of “Audio", " Documents", “Movies”, “Photos”, “Apps” and “Backups”.
You can’t directly manage the contents of this category. That is done by macOS. The category varies in size depending on the current state of your Mac.
What you can do to create more free space:
• Empty the Trash in the Dock.
• Empty the trash in the Photos app.
• Delete unused and unneeded application installers from your downloads folder and desktop. No need to store on your Mac what you can freely download any time.
• Reboot your Mac at least weekly. Let the OS do its housekeeping.
• Transfer files that you don’t use daily to an external drive and then delete them from the startup drive and empty the trash. Files that take up the most room are movies, images and music.
This from Apple on the subject of freeing up space:
Free up storage space on Mac - Apple Support
Also, please see the following guidance from Apple:
Find and delete files on your Mac - Apple Support
Know that you have a computer with less than adequate storage for most users today. It may have been "fine" years ago, but things change. If you wish to continue to do computing without having to constantly consider your storage situation, you'd be wise to start planning to replace that Mac with something that has greater storage capacity, say 512 GB or 1 TB at minimum.