Let’s begin from the start here. But you really should follow the WordPress tutorial on setting up a Static Front page which is what you are wanting to do. But I will try to sum this up in a short version.
1. Make sure you have 2 pages made. Make one and call it Home. Make another and call it Blog.
2. Go to your Appearance >> Menus and make sure you have a menu created.
3. Add the “Home” and “Blog” pages to your menu.
4. Go to Settings >> Reading, then on the drop downs for the Front Page, select the “Home” page you made and for the posts, select the Blog page you made.
About menus….You can rename any menu item. When you add pages or anything to a menu, it adds a default name to the label field, usually the name of the page title. But you can change the menu item’s label name. So when you add for example the “Home” page to your menu, you can change the name “Home” to whatever you want by deleting the label name and type your own to replace it.
As a side note, you may want to check out http://www.wp101.com for WordPress tutorials. Very good video tutorials for anyone who is new to WordPRess and want to learn about the different functions of WordPress, such as menu management.