How to set Home and Blog Page?

For blog themes set front page display to ‘Your latest posts’.
This is already set by default.

If you need home page other than blog posts page

Add two new pages named as ‘Home’ and ‘Blog’ (Pages > Add New).
Not necessary to add these pages if you have imported demo data, and those are already there. Depends on theme though.
You can assign any other page as front and blog page anytime.
Go to : Settings > Reading
Select ‘Static page’ in ‘Front page displays’.
Select Home as Front page & Blog as Posts page.

hbpage

If you are not getting options under ‘Reading Setting’ as discussed above, deactivate third party plugins ( other than recommended ).
You should get that as it is a default WP functionality. Some plugins modify this.