what does html do?

It is the code used to create web pages.

how do I write code to make web pages?

You can use notepad or wordpad, or a nice free ware text editor notepad2. Or you could use the best software ever created Dreamweaver. Once you have the code written you save the file as "example.html," not "example.txt."

how do I make my page look like yours?

Well, a lot of practrice, and determination. You need to stick with it, HTML isn't something you can learn over night. Web design has come a long way over the last couple of years, you can't expect to be as great as us over night.