what is the difference between creating ordinary tables using 'dbo' and creating tables using schemas.How this schema works & supports the tables
A schema is just a container for DB objects - tables, views etc. It allows you to structure a very large database solution you might have. As a sample, have a look at the newer AdventureWorks sample databases - they have a number of schemata included, like "HumanResources" and so forth.
A schema can be a security boundary, e.g. you can give or deny certain users access to a schema as a whole. A schema can also be used to keep tables with the same name apart, e.g. you could create a "user schema" for each user of your application, and have a "Settings" table in each of them, holding that user's settings, e.g. "Bob.Settings", "Mary.Settings" etc.
In my experience, schemata are not used very often in SQL Server. It's a way to organize your database objects into containers, but unless you have a huge amount of database objects, it's probably something you won't really use much.
dbo is a schema.
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