The Groups tool allows for smaller group interaction within a course.
Instructors may use Groups to organize small group discussions, group assignments, and group grading. Students can use Groups to work collaboratively on projects and assignments, and have or participate in discussions. Within each group, students can create pages, announcements, collaborations, discussions, and calendar events. It’s like a personal Canvas site for a set group of people.
The video below will show you how to create Groups for both self-assign and group selection by the professor.