You can select Azure AD Administrative Unit to limit the command scope.

Query criteria are sent to the target platform with other query parameters to reduce the number of returned objects and may improve query performance.

Example:Search for devices created in the last 30 days. Copy/paste this script.

{$global:dtCompare=(Get-Date).AddDays(-30); [scriptblock]::Create('CreatedDateTime -ge $dtCompare')}.InvokeReturnAsIs()

To hide unwanted data based on criteria, not supported by the target system in the query criteria, set the filtering conditions here.

TIP: Use the Query criteria above to filter objects whenever possible for optimal performance.

Usually, rules use query criteria to limit the query search scope. It improves the performance of the executed rule.

Due to PowerShell limitations, using calculated expressions in query criteria is impossible. That is the point where the initialization script can help. You can initialize a global variable in this setting and then use it in query criteria.

IMPORTANT: To use a variable, declared in the initialization script, in the query scope, it must be global: $global:<variable name>.

When the MS Graph query condition is specified, it overrides the Query criteria setting. You can use OData filters supported by MS Graph that will be added to API requests.

For examples please see this article: How to use Query Builder dialog for Query Criteria and Filter rule settings.