Below the main folder display is a cache line of recently visited folders. If you have nested folders, their complete pathnames are given in the cache window. The Folder Cache preferences set the number of folder cache lines. You can also put some folders into the cache permanently with the Sticky Folders preference item.
If you don't have many folders, the folder cache line is really just a waste of screen real estate. To eliminate this part of the display altogether, set the number of folder cache lines to 0 in the Folder Cache preferences section.