PhpStorm stores the local history of all files.
Does anyone know where these files are stored?
The local history is saved along with other index / cache files . You will not be able to read it yourself if you want to copy / create a backup separately - it is associated with your current files and is deleted if you use File | Invalidate Caches..for example.
File | Invalidate Caches..
The exact location depends on the OS: https://intellij-support.jetbrains.com/entries/23358108-Directories-used-by-the-IDE-to-store-settings-caches-plugins-and-logs
On Windows 7 for PhpStorm v8 it is usually located in a folder C:\Users\USERNAME\.WebIde80\system\LocalHistory.
C:\Users\USERNAME\.WebIde80\system\LocalHistory