One of the core design aspects of the Asset Browser is that users can "mount" custom asset libraries (.blends or directories) via the Preferences.
Idea is simple: In Preferences → File Paths, you can create custom libraries, by setting a name and selecting a path. The name is ensured to be unique.
The repository path is not checked for validity, the Asset Browser will allow selecting invalid libraries, but show a message instead of the file list, to help the user understand what's going on.
Currently, only .blend files are supported as libraries. But directories should eventually be supported as well, see T82682: Support Directories as Asset Repositories.
