To setup the blog page, in your WordPress admin panel, navigate to Settings → Reading.
Assuming you already have a page named "Blog", for the Front page display, select "A static page" and choose your "Blog" page as the Posts page. This is what you should be seeing on your screen from left side.
Assuming you already have a page named "Home", for the Front page display, select "A static page" and choose your "HOME page as the home page. This is what you should be seeing on your screen from left side.