Setting a static front page allows you to add static content on your homepage. This is what you want to do in case you don't want to show only your latest posts on your homepage.
Note 1: If you have imported the demo content like it is shown in the previous step, you can follow this video from the 0:30 mark as you don't need to manually create your static pages.
Note 2: In this video you can see the Front Page template being applied to the homepage. Please note that this template can be applied to any and as many pages as you need, not just the homepage.