Creating a separate environment in Anaconda Navigator keeps a project away from the packages and interpreter used by base. The desktop flow is suited to users who need a Python or R environment but do not want to type conda create commands in a terminal.
Navigator creates environments from the Environments page. The Create new environment dialog asks for a name, shows the target environment location as the name is entered, and lets the user choose a Python or R interpreter with a matching version.
The new environment appears in the environments list after Navigator finishes solving and installing the interpreter packages. Opening the activation options from the environment row confirms the environment can be used through a terminal or interpreter; IPython Console and Jupyter Notebook appear only when their required packages are installed.
Related: How to install Anaconda on Windows
Related: Create an environment with conda
Related: How to install a package in Anaconda Navigator

Navigator displays the environment location below the name field as the name is typed. Use a short project name such as analysis-lab and avoid spaces when the environment will also be used from a terminal.
Choose the version required by the project or course materials. Packages are built for specific interpreter versions, so the selection affects which packages can be installed later.
Navigator may show a progress bar while conda solves dependencies and installs the interpreter package.

Terminal and Python interpreter do not require extra packages. IPython Console requires ipython, and Jupyter Notebook requires notebook in the selected environment.