Explanation

Box 1: hard disk drives (HDDs)
Box 2: to another Azure region
Geo-redundant storage (GRS) copies your data synchronously three times within a single physical location in the primary region using LRS. It then copies your data asynchronously to a single physical location in a secondary region that is hundreds of miles away from the primary region.
References:
https://azure.microsoft.com/en-us/pricing/details/managed-disks/
https://docs.microsoft.com/en-us/azure/storage/common/storage-redundancy#geo-redundant-storage
https://docs.microsoft.com/en-us/azure/virtual-machines/workloads/sap/planning-guide-storage#azure-standard-h