The Show Axis option allows you to change whether the handles on the Stage for these tools are displayed in Local, Parent, or World space. Note that all values in the Inspector and the Timeline are always shown in Local space, regardless of this setting. This setting only affects the handles on the Stage.
The Create Tools allow you to insert new objects on the Stage. They are only available in Design mode, not Animate mode.
If an existing object is selected and it can have children (such as an Artboard, Bone, Node, or Solo) then the new object will be created as a child of that selection.
If the selected object can't have children (such as a shape or an image) then the new object will be created as a sibling (at the same level as the current selection).
If nothing is selected the object will be created at the base level of the currently active Artboard. Use the deselect shortcut (Mac: CMD + D, PC: CTRL + D) if you want to make sure nothing is selected.