Under Volumes→Volumes, click the "Create Volume" button.
Fill out the "Volume Name" field with the name of the volume.
Pick "Volume Source, pick "No source, empty volume".
Pick the storage type. Please refer to Storage types for information on which to choose.
Pick size of the volume.
Just leave default on "Availability Zone" and "Group".
Click "Create Volume" at the bottom.
You are returned to the volume listing page. Click the dropdown meny arrow at the end of the row for you newly created volume.
Choose "Manage Attachments"
Pick the virtual machine (instance) that you want to connect the volume to.
Now you can use SSH to the instance and manage it like a regular block device.
The portal tells you which device that the volume has been mapped to, but to be certain you can use the command "sudo dmesg" to view which device from inside of the instance.
You can create partitions with "fdisk" command and create filesystems on the device with the mkfs-family of commands (depending on which filesystem you want to create.
You can then mount the device with the "mount /dev/vdX /directory" command to access the volume.
You can also add an entry in the /etc/fstab file of the instance.