This. Reparse points / junctions / mounted folders is the way to go.
In addition to the article referenced by Cirrus550, you can also look here, to pick up a bit of terminology:
https://en.wikipedia.org/wiki/NTFS_reparse_point . Another pretty good description of what they are:
https://superuser.com/questions/1297273/what-is-a-reparse-point-and-why-is-it-named-so . Or you can just google it yourself.
NB: Make sure you know what you are doing. Careless playing with your file system on this level can screw up your drive(s) big time.