DLL's and learning how to use them

I keep seeing DLL's being thrown round, and the kinds of things they are used for.

So I have a few questions, that need to be explained in laymans terms, as I am still learning the proper terms.

1. How would you create a DLL?

2. What would you put in a DLL?

3. How would your exe call the stuff from the DLL?

4. And how would it use it?

Nice and easy for you brain boxes! (I think, try explaining quantum physics to a chimp! lol!)

1. How would you create a DLL? Well, a compiler usually has a command line option to have the output become a DLL rather than an executable. Check with your compiler

2. What would you put in a DLL? A large set of functions that I use in a lot of my programs that I wouldn't want to copy/paste. I would also use a DLL for organization, seperating huge blocks of code that have nothing to do with each other.

3. How would your exe call the stuff from the DLL? Usually there are some methods to import DLLs. For C# importing C++ DLLs, I believe the only way is function by function.

4. And how would it use it? A DLL? Well you could create one using your compiler. Import the DLL into your Visual Studio Solution (as a project) and import the stuff you need in code.

So would I create a new project, and add functions at the end of my code, like I do at the moment, compile it to a DLL, and then import it, add a 'using' statement, and then call the functions as normal in my code?