We need to instruct WordPress to start using those two pages when determining the contents of your home page.
Go to Settings | Reading. Once there, switch the first setting on the page from <Your latest posts to A static page. From the drop-downs, assign your new page Home as the Homepage and the page BLOG as the Posts page, as follows:
Click on Save Changes.
With that, one of your new pages—Home—has become the home page for your entire website. However, currently, there's nothing much going on there since the page is blank.
The other page—BLOG—has been tasked with listing your latest blog posts in reverse chronological order. In other words, the BLOG page now does what was previously done by the out-of-the-box default home page. You can see the blog page if you go to YOURSITE.com/blog.