A collection page template is created for each collection whether you use it or not. A page will be dynamically created for each collection item based off the the layout of the collection page template. You need to design the template page and define what collection content will be displayed.
A simple example would be a blog. You create a collection called "blog" and each collection item (blog entry) has multiple fields association with it (Title, Description, Date, Photo, Etc.). On the blog page template you design what you want each individual blog post to look like and define where the field values go. Once that is done, a page will be automatically be created for each new blog post (collection item) that you enter.
But now you need an index page for those blog posts so people can browse them. This is where you create a static page then drag a dynamic list blog onto the page and choose what collection and what fields you want to display.