No, not necessarily. I use WAMP on Windows which creates a directory at C:/wamp/www. My main installation under here is "suite" but you can create any subdirectory you want (or, if this will be the only site you work with, you don't even need to create a subdirectory at all). That said, the exact directory structure is dependent somewhat on the software you use.
If you wanted to do this on your webserver, you could create any subdirectory you want as well. Some do /staging or /test or whatever, but there's no specific required subdirectory name you must use.