How to add persistent storage for Balena OS on Raspberry PI?

I read the documentation that you shared and a discussion on the balena forum #22

It cleared some concepts but I still have some doubts. Now I have a database file that I want to persists through all container update and changes.

First Question =>

Where should I add the database to persist it? and How can I add it?

Second Question =>
What I understood from the above 2 links is that using balena volume ls I can confirm if the volume is loaded. But I am confused about How docker compose file should be constructed for that purpose?

volumes:
  Test-Database: {}
service-1:
  volumes:
    - 'Test-Database': #what should be added here?

Question 3 =>

what should I pass the database path in my application code?