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Relational vs Flat DB?

Hello all,

I'm a noob to LO Base. Can someone tell me if you can create a relational database on a stand alone computer or does it have to be created on a server? If it's possible to do on a stand alone is there a link some place on how to? I'm going through the Getting Started PDF and it walks you through creating a flat DB but not a relational one....

I apologize for asking such a dumb question....but I'm trying to learn and I suppose I have to walk before I run and understand some of the basic concepts first.......

Thanks for any help....I appreciate it very much.