There are several ways that an author can create a setting. Usually, they all involve some variant of use what you know. Whether that is you physically have been there such as in Dragon’s Future, Dragon Fen, and Dragon’s Posterity, or some place you have read about or seen a movie about such as in Heir of Dragons and Dragon’s Cure.
See what you can do. What places have you seen or been to that would make a wonderful setting for a story? Let me know. Who knows, maybe there’s an author hidden inside of you, too