Do you want to keep your older pictures in a separate Photos Library, or will you keep them in folders in Finder? Either is OK with iCloud.
iCloud can mean two different things. First, there is iCloud synchronization, which is what we talk about most often around here. That keeps the Photos library on different devices looking the same, and adding or deleting a picture from one device does the same on all of them.
Second, there is the iCloud Drive. You can set Finder>Settings to show this in your Finder sidebar:

Then iCloud shows up in your sidebar:

If your old pictures are in a separate Photos Library, you can use the sidebar iCloud for a backup. You can copy your Photos Library there, and it will be backed up off site in the "cloud."
iCloud Drive is a bit weird because, unlike an external drive, when you drag files to the iCloud drive, they disappear from your own hard drive. It's like one or the other. That's why I said copy the library-- use option-drag if you want the Library to continue to remain on the original drive as well as on iCloud.
You can't have the Photos app use the Library from iCloud like you can if it were on an external hard drive. If you want to open the iCloud backup in Photos, you have to first move it to a local Mac Formatted drive.
If your pictures are not in a Photos Library, and you don't want to use the Photos app, you can just drag the pictures' folders to iCloud Drive and they will exist there like on an external drive. Again, they will disappear from your own hard drive to save you space.