Direct-read formats are used directly from the Catalog tree as read-only datasets. When you add them to ArcMap, ArcScene, or ArcGlobe, all standard map functions are enabled, including attribute tables and labeling functions.
This is default functionality for many nonnative formats when the Data Interoperability extension is enabled. Other formats may require an Interoperability Connection to be displayed in the Catalog tree. This is determined by several conditions, such as the predictability of the file extension or whether it will conflict with a format already registered on your system.
Using a direct-read feature class in ArcMap is similar to working with other geodatabase feature classes. You can snap to geometry, substitute symbology, query attributes, and use it with all geoprocessing tools that accept feature classes or layers as input.
To edit the data, you must convert it to a geodatabase format using the Quick Import tool or a spatial ETL tool.