When you create a chart Excel automatically creates the chart on its own sheet and labels it Chart1.

Name: When you create a chart Excel automatically creates the chart on its own sheet and labels it Chart1.
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Quizplus · Accepted Answer

By default, Excel creates a chart on the same sheet as the data, not on its own separate sheet. This is known as an embedded chart. However, you can move the chart to its own sheet manually if desired.

When You Create a Chart Excel Automatically Creates the Chart