A subdomain is a subsection of your website. Subdomains use a prefix in conjunction with the domain name. The subdomain name looks like test.yourdomain.com, support.yourdomain.com. For creating the sub-domain,do the following:
1. Login to the cPanel.
2. Navigate to the menu Subdomains under Domains section .
3. Enter the desired prefix in the Subdomain field. For e.g. you may choose "chat". If you choose chat,then your sub-domain will look like "chat.yourdomain.com".
4. Select the desired main domain from the pull-down menu.
5. When you click on the Document Root field, it will automatically populate with a cPanel suggested location from which the subdomain will load it's content. For instance, if you choose "chat" as your new sub-domain, then the "Document Root" field will populate with "/public_html/chat". This means that the new sub-domain will load it's content from the folder named "chat" from within the "public_html" directory.
6. Once all the fields are set the way you prefer,hit the Create button.
NOTE : Subdomain will not be functional unless it is configured to point to the appropriate DNS servers.