Folders in the Mail Folders section of the Navigation Pane are listed alphabetically, which cannot be changed. But in Favorite Folders you can add as many folders as you like and arrange them in any order. The high visibility position at the top of the Navigation Pane makes Favorite Folders a great place for high priority folders. You can duplicate any of the mail folders in the Navigation Pane and, if you add enough folders to Favorite Folders, it can expand and become your main entry point to your mail folders.

If your other Microsoft Office Outlook folders, such as Calendar or Contacts, become less visible, you can always rely on the folder buttons at the bottom of the Navigation Pane to access your items in those folders

Try customizing Favorite Folders and find out if its flexibility enables you to arrange your mail folders the way that you want. For more options, see Customize the Navigation Pane. I hope that it is helpful for Outlook Support and given some steps to add or remove folder in favorite folder and rearrange favorite folder…