Question / Help Built-In Web Cam?

Got it all set up, just need to do a test recording with the web cam set up to make sure I set it in the right place. My display when OBS is open and showing the studio in the Display Capture window looks like one of those "looking into a lot of mirrors" type of things. Dunno how to explain it...
Lol I did not know that. I'm in my final stages of set up. Figuring out how to start up livestreaming. I stream directly through my YouTube channel but when I opened OBS and tried to start a YouTube livestream it said my camera was being used in another application. Gonna try starting a stream from the OBS side and see what happens. Otherwise I'm at a loss on how the set up works.