Right-click the layer in the table of contents that you want to convert to graphics and click Convert Features To Graphics.
Click All to convert all features or click Selected to convert the selected features.
Choose whether you want to draw only the graphics or both the features and the graphics after the conversion.
Set the target where you want to store the graphics.
The default target saves the graphics to your map document.
Click OK.

Tips

Use this option to convert the features in a layer to graphics that can be moved, resized, and edited on the map. This is useful if you want to change the location of features relative to each other for cartographic purposes, such as generalization, but you don't want to edit the source data that your layer represents.

The features remain selected after you convert them to graphics. For example, if you select a set of features in a layer and convert these features to graphics, the features will remain selected after the graphics have been created. This makes it easier to complete workflows where you want to retain the selected set of features, such as switching the selected and unselected features and converting those features to graphics. You can click the Clear Selected Features button Clear Selected Features on the Tools toolbar to deselect them.

If you choose the option to draw only the graphics after converting but later want to draw the features again, open the Layer Properties dialog box, click the Display tab, then look under Feature Exclusion. The excluded features are shown in the list. Click a feature or features and click Restore Drawing to display them, or click Restore All to display all features.