Let's say your domain is mydomain.com. On your mydomain.com site you create a page called About Me, with the file name aboutme.html. The default URL for this file will be mydomain.com/aboutme.html. If you want to, you can create a subdomain for this page, for example, aboutme.mydomain.com. This page can now be accessed by both URL's, mydomain.com/aboutme.html as well as aboutme.mydomain.com. There's not really any reason to create a subdomain except that the URL becomes easier to remember.
Subdomains are independent sites with independent file and folder structures.
Subdomains do not need to be registered via a domain name registrar because they are just extensions of already-registered domains.
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