You can easily restore single files and folders. All data can be restored in place to its original location. 

Calendar, OneDrive, and Mail folders can also be restored to folder. This means that the data will be restored to a newly created separate folder in Office 356. 

For more information on what happens to your data, see: What happens to my data when I restore?

Note: To recover data from a deleted user, use the import function. See: How to import Office 365 data

To restore a file or or folder:

1. Select the connector from which you want to restore.

2. Navigate to the file or folder you want to restore.

3. (Optional) If you want to restore an item from an earlier point in time, in the upper-left corner select the monitor icon, select History Snapshots, and then select the appropriate snapshot.

You will see icons next to each snapshot informing you whether the snapshot is indexed or unindexed as well as complete or partial. For more about partial snapshots, see: What are partial snapshots?

4. Click the More Options icon (...) and select Restore.

5. Confirm the restore.

If you are restoring Calendar, OneDrive, or Mail folders, you will see the options to restore in place or to restore to folder. Select the method you prefer, then click Yes.

All other data will be automatically restored in place. Click Yes to confirm your restore. 

Note: If you are restoring an email from the Sent Items folder, the timestamp in the Outlook web app on the restored email will reflect the date and time that the email was restored, NOT the date and time that the email was sent. The reason for it is that for Sent items, the Outlook web app uses the create date timestamp instead of the sent date, despite the fact that the metadata contains the correct information. In the Outlook desktop app, the timestamp on the restored email will reflect the date and time the email was sent.