The first time you sign in to OneNote with an organizational (school or work) account, OneNote creates your first notebook automatically and stores it in OneDrive for Business. However, if you haven’t used OneDrive for Business before, your account won’t have storage set up yet.
To enable storage, sign-in to your OneDrive for Business account online. Please note that it may take a while to update your account. If you have a license to store notebooks on your computer's hard drive, OneNote will store your first notebook there instead.
If you don’t have a license to store notebooks on your computer's hard drive, and you want to get started right away, please sign-in with a Microsoft Account (this is the email address and password that you use to sign in to services like Outlook.com, OneDrive, Windows Phone, or Xbox LIVE). Alternatively, try signing in again later with your organizational account, after your storage changes have been updated.