It's both internal & external, but I see only an external cable. How does it connect internally?

It's internal only. Supports 19 pin internal USB 3 connector.

Questions & Answers: 3.5" Floppy Drive Internal Card Reader USB 3.2 GEN1 5Gbps SD,CF,MS,XD Desktop Card Reader USB Flash Memory Reader Front Panel for Desktop Z240 Z440 Z640 Z840,1.64ft Cable Length

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Item#: 9SIACJF7N66048
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3.5" Floppy Drive Internal Card Reader USB 3.2 GEN1 5Gbps SD,CF,MS,XD Desktop Card Reader USB Flash Memory Reader Front Panel for Desktop Z240 Z440 Z640 Z840,1.64ft Cable Length

USB 3.2 Gen 1 (5Gbps) Internal Card Reader
CF I/II Slot
SD/SDHC/SDXC/UHS-I/II Slot
MS Pro/MS Pro Duo Slot
1.64ft cable length for motherboard connect
Internal USB 19Pin Header on Motherboard is needed
Compatible with HP Desktop Z240 Z440 Z640 Z840
For 3.5 floppy bay installation

$22^.79 –