How can I make an area/models?

Hey, this is my first time using Unity, so I hope I can get all my answers here. I need help making an area/enviroment for my game. The terrain stuff is confusing, if that’s even how you make it. And how do I make models on Unity?

Unity in itself is not a modeling program, but a game engine. A place to put your models into something you can make playable. To make 3D models, I recommend Blender, an open-source tool used to make 3D models for movies and video games. If you have the money, Autodesk 3DS Max is a good solution, too. And as for making terrains… http://docs.unity3d.com/Documentation/Manual/Terrains.html should help.