Using Feature Sets
When a feature set variable is opened in ModelBuilder, interactive digitizing of features is disabled. Features can only be interactively entered from the model tool dialog box when opened in ArcMap, ArcGlobe, or ArcScene. Since the only way to interactively digitize features with a feature set is by opening the model tool dialog box, the feature set variable must be exposed as a model parameter. To set the feature set variable as a model parameter, in ModelBuilder, right-click the feature set variable and choose Model Parameter.
Running within ModelBuilder
When you open a feature set variable In ModelBuilder, the default value is the name of a feature class that will be created in the in_memory workspace when the model is run using its tool dialog. You can replace this value with the name of a feature layer or feature class and run your model within ModelBuilder, as illustrated below.
Using Record Set
Unlike feature sets, record set variables can be interactively edited in ModelBuilder. This allows models containing a record set variable to be run within ModelBuilder. Any records added to a record set in ModelBuilder will appear in the model tool dialog box if the record set variable is set as a model parameter. These prepopulated records in the record set can be modified from the model tool dialog box or deleted from the record set. New records can be added to the record set at any time.