How do i extract the zip file to the mod folder and upload it to steam?

You will first need to create the mod through the Steam launcher, see here for more details: https://edge.hoi4modding.com/forum/general-chat/1443-how-do-i-test-my-mod#3691

After creating the mod, and you are happy everything works, if you follow the steps for creating a mod - but stop at step 3 (where you press "Create a mod"), then select your mod from the dropdown menu, and hit "Upload mod" instead.