A variable is a named value that can be retrieved and modified by referring to it by name. An important advantage of using variables over using specific values is the elimination of the possibility of misprinting when reusing them.
An object is a variable.
Variables are created by users.
If you don't understand what a variable is, look to high school math. An expression of the form x = y + 1 is nothing more than taking the value of the variable y, adding one to it, and adding the resulting value to the variable x. From that point on, the x variable will be equal to the value obtained as long as no other value is added to it.
To create a variable, click "Create Variable..." and enter a variable name. Three new blocks will appear under "Variables" - Assign, Increase By, and Receive Variable block.
To rename or delete a variable, add any variable block to the workspace and click on the variable name.