To create a new location, select 'Locations' on the navigation bar at the top of the page. In the 'Site Structure' menu on the LHS, choose the location in which you would like the new location to exist. Select 'Home' if there are no existing locations or if you want the new location to appear on your homepage ('Home') is the root location. The highlighted location will be the parent of the new location.
Click 'New' (just under the navigation bar), which will open the 'Basic details' of the location you are creating. Insert a title and alternate title for the new location - selecting 'Get suggested' will automatically create a URL so that the full path is defined. Select 'Save' at the bottom of the page once finished, and the location will appear once you refresh the page.
Scroll further down in 'Basic details' to insert a summary image, set the template & layout for pages that are added in the location, and more.
Click here for a video tutorial about creating locations.