Editing a Google Cloud Connect doc vs. editing a Google doc
Google Cloud Connect does not support switching editing of the same doc between the Web and Microsoft Office. When using Google Cloud Connect in Microsoft Office, you can only edit docs locally from your computer, not online from Google documents, presentations, or spreadsheets.
However, you can create an editable Google Docs copy of your Cloud Connect doc:
Open the Office doc from your Docs list.
Click Open. The doc will still be in preview mode.
Click File > Edit online. The doc will open as an editable Google doc.
As soon as you're editing the copy of the doc online in Google Docs, it can't be synced back down to update the version in Microsoft Office on your local computer. Any edits you make using Google Docs can't be synced and will only be stored online.