Hi Winterlilly,
It sounds like you're confused about what the FTP settings are for. They are for moving your backups after they are created to a remote FTP server, if you should have one and wish to use it. If you do have one and wish to use it, then you'd know what it's settings are, so it sounds like you don't and are thinking that the FTP settings are for something else?
If you choose "None" as your remote storage method, then your backups end up in the folder wp-content/updraft in your WordPress install. But choosing "None" is not recommended, because then you have no backups if your WordPress install is destroyed by hackers.
The easiest remote storage method to use is Dropbox - it's very easy to setup an account with them, and then in UpdraftPlus you have to do nothing except select "Dropbox" and click one link after that.
David