A subdomain is a domain that is part of a larger, parent domain. For example, blog.example.com is a subdomain within example.com. This lets you split one domain into separate sections and services without buying new names.
A subdomain is not bought — it is created through DNS: you add a record for the chosen name in the parent domain's zone. Usually that is an A record pointing to a server's IP address, or a CNAME pointing to another name, such as an external service. Once the zone updates, blog.example.com resolves just like an ordinary domain.
Subdomains help structure a project and split traffic:
Unlike a TLD, subdomains are ones you create and change yourself — all you need is access to the parent domain's DNS.