A Virtual Machine floppy disk drive can be connected to a real floppy drive as well as to floppy disk image. To get information on floppy disk images used by Parallels Workstation read Floppy Disk Images topic.

Device status:
To temporary disable floppy drive operations without deleting it from configuration, deselect Enabled checkbox.
Note: If you start the operating system with the floppy drive disabled, you cannot change this option when Virtual Machine is running.
If the floppy drive is enabled, it can be connected/disconnected while VM is running. Media that the floppy drive accesses can also be changed.
To start guest OS with the floppy disk inserted, select the Connect at startup checkbox.
Emulation:
If you have the physical floppy drive(s) on your computer, then you can select Use real floppy radio button and the floppy device name will be shown in the Floppy Drives list. You can select one of them (for example, A:).
Note: In Linux primary OS to be able to connect Virtual Machine floppy drive to a real floppy drive, you should have system privileges to access real device. Otherwise real floppy will not appear in the list of available devices despite it is installed on your computer.
To use a floppy disk image (the .fdd file), select Use image file radio button. A new field, Image File, appears. Specify the path to a disk image file or click Browse button and locate the file.
Parallels Workstation allows to create blank floppy image. Type the file name in the Image File field and click Recreate button. The size of a floppy disk image equals 1.44 MB. The default extension for a floppy disk is .fdd and the corresponding file is created in the directory specified in the Image File field.