A domain name is read from right to left and split into levels by dots. In blog.example.com the top-level domain is .com, the name example is the second-level domain, and blog is a subdomain. The TLD is where DNS starts resolution: the query goes to the root servers, which point to the NS servers responsible for that zone.
Top-level zones are usually split into three groups:
The TLD you pick affects how a name is perceived and whether it is available: country zones can be limited by requirements on the owner, while popular generic zones cost more.