Using Feature Set and Record Set in ModelBuilder
Using Feature Sets
If a feature set variable is opened in ModelBuilder, the interactive control of the feature set will be disabled. Features can only be interactively entered from the model tool dialog box opened in ArcMap. Since the only way to use the feature set is by opening the model tool dialog box, the feature set variable must be exposed as a model parameter. To set the feature set variable as a model parameter, in ModelBuilder, right-click the feature set variable and choose Model Parameter.
If the model must be run in ModelBuilder, simply change the data type of the parameter from feature set to feature layer or delete the feature set variable and add another data element, then connect it to the appropriate tool or process.
Using Record Set
Unlike feature sets, record set variables can be interactively edited in ModelBuilder. This allows models containing a record set variable to be run within ModelBuilder. Any records added to a record set in ModelBuilder will appear in the model tool dialog box if the record set variable is set as a model parameter. These prepopulated records in the record set can be modified from the model tool dialog box or deleted from the record set. New records can be added to the record set at any time.