ICloud storage for new photos app

iI've just updated Yosemite and the new photos app is asking me to upgrade my storage, now if I do this will it upload all my photos on my iMac to the cloud including external drives connected to my iMac?

Are you certain?
From Get started with Photos for OS X - Apple Support
"If you change your System Photo Library, the contents of this new library will be merged with the contents already in iCloud."
But presumably this merge is two-way i.e. the contents already in iCloud will then be merged into the new System Photo Library? It's not clear, but that's how I understand it.
In any case, http://www.fatcatsoftware.com/comments/announcing_powerphotos may well offer library merging in a post 1.0 release.

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