Your albums are made up of pictures you have already uploaded to Flickr. There is a tab or a button you select for starting an album under the albums menu. When you select to start an album, the pictures you have uploaded will appear in a row at the bottom of the window. You drag and drop the images that you want in the album and you can arrange the photos in the order you want them to appear in the album. DO NOT REMOVE the images from your photostream after you have made the album or they will be gone from the album! Your photostreaam supports everything you do in Flickr. After you make the album you will be able to give the album a name. Be sure to bookmark the album page and not the photostream page. If you have albums for folks to view, you don't want to direct them to your photostream too. Be advised: You must maintain a Yahoo email account to keep access to your Flickr page. I didn't do this and I have lost my password and can no longer access my Flickr account. If you lose or forget your Yahoo password you will have to go through hell and back to try to reset a new password, a nearly impossible task that can take days! Flickr/Yahoo customer service is extremely slow to respond to customer input. That is why my Flickr page is retired. Some day the page will disappear but I still have all the original images.
This is my now retired Flickr album page: https://www.flickr.com/photos/fotofrank01/albums