A Dynamic Web Template (.dwt) is an HTML-based template created for the purpose of creating more web pages instead of making every page from scratch. You can create as many DWTs as you would like for one web site. I encourage that you do so as DWTs save you a lot of time and frustration.
I think it's easier to make one entire web page and then save that page AS a .dwt. Then, add editable regions to the template.
Therefore, if you have followed the Quick Start Checklist, the very last step is Saving your home page as a Dynamic Web Template. Your home page should have at least a completed layout, navigation menus, and content boxes. In other words, your home page should be a completed web page, minus any content.
1. Then, with your home page open in the main editing window, or choosing the home page in the Folders list by clicking on it, Click File --> Save As.....
2. A dialog box opens. Change the name of the page from index to template-1 or something similar.

3. Click Ok. Save your work.
4. Add Editable Regions: place your cursor inside a div or content box that you want to make editable on web pages created from the dwt, then right click --> choose Manage Editable Regions. A dialog box will open.

5. Region name: type the name of the editable region. you can name this anything you would like.
Note: do not complete the Page Properties (title tag, meta description, etc) for the DWT. Plus, always make sure the doctitle is listed as an editable region as it is in the image above. This will prevent you from getting locked out of the Page Properties - Title & Description.
You must add at least one editable region before you can create any web pages from the DWT.
6. Save your work.
Locate your DWT in the Folder List. Right click on your DWT and choose "New From Dynamic Web Template".