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Subdomain, also known as the  third level  domain, is an excellent way to create memorable web addresses for various sub-pages of your site. For example, Yahoo uses subdomains for its different services, such as  mail.yahoo.com ,  music.yahoo.com , etc. The basic syntax is:  http://subdomain.domain.com.

Large companies use subdomains branding and focus on the products or services have registered separately, because a subdomain creates a separate URL and web presence, all in the same primary enclosure. For example, a restaurant directory to establish sub-domains for different cities, or school can create subdomains for different courses.

It is also possible to redirect (forward) traffic from one subdomain to another location, either on the main site or on another site.

You should be able to configure and manage add-on domains, parked domains and subdirectories from your hosting account Control Panel or domain registration.

But as is often claimed to always check with your provider before you proceed, if you have any questions.