The easiest way to backup is to simply copy the entire calibre library folder to some other place. As has already been said, that folder is the library.
You can also use the save to disk feature, but then you will have to create a new library and add the books to the new library in order to restore everything. And you may loose custom columns and other stuff.
Create a small library with a few books and make a backup. Delete the library and restore it, to make sure it works. If you have a large library then some sync utility can make it faster, so you just have to save changes to update the backup, not the entire library.
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