A Blog page can be created if you proceed in WP admin menu to  Pages > Add new. You’ll get an Add Page window, where to the left you will find a menu:

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Choose the Blog Template.

In Page Options  you will be able to configure your Blog Page appearance, like an amount of posts per page, their order type, choose a specific post category to be displayed on your blog page, as well as set layout type, page heading and other options.

Options available under Background, Heading, Breadcrumbs, Slider & SEO tabs are identical to the same options for regular pages. Please see more info.

Also, read more about default Blog Page Settings - open post.

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Page Options allow to:
1) Set posts order type and items' quantity per page.
2) Choose the Blog Category.
3) Set any of sidebars: Right, Left, Middle, Top (using Custom or Default sidebar) or make a full width page.
4) Set any background, heading, etc.

When your blog page is ready you may add it to the navigation menu in Appearance > Menus:

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Also, please take a look at the global settings available for your blog page in Blag Page Settings post - Proceed