What do I do with these files in zip? Can it read the zip files itself or should I extract them into folders?

The file came with a zip and .var, should I extract or keep it zipped? and do I just throw it all into addonspackages folder? Theres alot of them so it'll be annoying to sort each folder into its own spot.

A var is just a zip file with these contents. If the zip file has a meta.json in the top level, then just change the file extension from .zip to .var. Never let your browser change file extensions. Never let Windoze hide file extensions. Note also that the correct naming convention for var files is creator.some_asset_name.version.var where version has to be an integer.