Once that’s in place, you’ll start getting rewards and unlocking new mechanics based on your village’s level.
With the Village Square built, you’ll assign a color and symbol to your village’s map icon. The Village Square requires 10 wood and 10 granite to build. Playing through the tutorial, it won’t unlock until you’ve built (at least) a campfire and simple shack. Starting a village in Lego Fortnite just means building a Village Square.