When you are creating a (custom) Field for your database, you have a few choices for the Input Type.
Outlined below, is a brief description of each available type of field which you can create, and an example as to how that type of field appears when you are coding.
Pick a date using a drop-down calendar. Since the dates are not added until the time of coding, you don't need to add any values.
Enter any text you choose into a blank. Since it's freeform, you don't need to add any values.
A list of values to choose from, plus an "Add New" option for when your value is not (yet) in the list.
A list of values without an "Add New" option.
Freeform field that expands to display longer inputs (e.g. Attorney Notes or Document Summary). Since it's freeform, you don't need to add any values.
A list of values to choose from, allowing a user to select more than one applicable value. Type in or select a value, then click to Add. Click the x to remove a value. To add new values, go to your settings and add them in to your hot fields.
WHEN UPDATING A PICKLIST: Be considerate of any potential Bulk Actions you will need/want to make, as Bulk Actions for Picklist type fields will overwrite any existing selections for that field.
For example, if you were to select a series of documents tagged with the Gable Enterprises and Smith Industries values of a "Contract" picklist type field, and then make a Bulk Action to mark all documents with the Contract "Zephyr Unlimited" value, all selected documents would then only be tagged with the Zephyr Unlimited value.
Set a single value (e.g. Hot Doc).