Configuring backup drives for Alwayson
... is being backed up to the data drive as of now. 


So, what happens when you lose a node? What would happen if that server crashed and burned or you lost the data drive? Now you've lost the database backups...


  My question is does this 2 node setup require 2 backup drives? One for secondary and one for primary? Please clarify


The best option would be to have an SMB 3.x share to which these backups are sent. You could also tie into a 3rd party backup software like Commvault, netbackup, etc., by writing your backup process to hit local disk then copy to the 3rd party service/appliance.

The reason is that the AG could be primary on, potentially, any node. If we're backing up to local disk, the backups could be spread across many nodes. This means we might not be able to have an entire backup chain when it comes time for a disaster.