Cloud Shell is a micro vm dedicated to you, free, and with a mounted personal disk.
EDITED: Thanks to @Johnhanley comment, you can access to the cloud shell file of someone else with this code provided. However, you need the credential of the target Cloud Shell env and it's not very secure and recommended.
However, you can mount a fuse directory. And the other user also. With fuse, you navigate in a bucket like in directory. But be carefull, Storage bucket is not a file system: performance and usage aren't the same. Moreover, Fuse don't guaranty the data integrity in case of simultaneous file use, especially writing concurrency. Use with precaution.
But you can have a common workspace if it's your requirement.
If you use Cloud Shell as dev environment, like a computer or a VM, the same best practice are to apply. The dev environment has to be considered as ephemeral (computer can have outage or be lost/stolen, People can leave a company and you no longer have access to their cloud shell), and thereby you have to save your sources frequently on safe space (Git repository, Cloud Storage with Fuse)