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Does it create tables inside Hadoop?

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No.

HIVE is purely a data warehousing tool. This means that HIVE and Hadoop are completely separate entities. We all know that Hadoop Clusters contain a massive amount of data within them. Say, if we were to perform operations on that data, it would generally be really inefficient way to operate on that data in the server itself, it would slow down the operations for everybody working on the cluster. To solve this, we use HIVE querying. HIVE runs in theory on the clients end, NOT on the Hadoop Server End. HIVE takes a view of the data on the server's end and performs queries on it. But, the data on the actual hadoop cluster is unchanged and unaffected while this is going on. Whatever HIVE does, it does so on the top of the data warehouse from the Hadoop Server. To learn hadoop, you can have the HIVE and hadoop server on the same directory but in real-world practice, that isn't a general practice. 

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