I'm assuming that you want to have a home page with it's own content and then the blog to be elsewhere on your site.
What you want to do is create a Page Template. Call it
Home Page Template or something like that and you can make the file whatever you'd like - maybe
template-homepage.php. You may want to copy your
page.php file and rename it, add in the template file header (see link above) and then start editing that page to be as you'd like the home page to be.
As of Wordpress 3.4 you can actually just make a copy of
page.php, create a folder in your theme called
templates, and then drop the new file into that folder without doing anything else.
The next step is to Create a Page. On the right side of the edit screen, you can select the Page Template. Choose the Page Template that you just created.
Then go to Settings > Reading Settings. You'll see the Front Page Displays section at the top. Select A Static Page and then you can choose that newly created page to be the front Front Page. At this point you should go and create another page, named Blog or News. Don't add any content to it or select a page template. Go back to the reading settings and select that new page as your Posts Page.
There are other ways to do what I just outlined, but that's my personal preference. Read about Template Hierarchy in Wordpress and there's always the Visual Guide below, which is a good way to tell which page template you need to create in order to achieve what you have in mind.