Whether you’re in business or school, outlines can be an essential part of your writing. You may plan a longer piece of writing in one, or use one as an executive summary. Either way, you should find the Outline Numbering dialog in Writer’s Tool menu useful. However, it requires some setup before it is ready to use.
Several versions ago, I would have suggested the second option of creating the list styles that you need, then attaching them to paragraph styles, using the Number tab. Now, you can still take this option, but, if you do, you must start by creating your own styles for each outlining level first.
The reason for this extra work is that, in recent versions of LibreOffice the ability to attach list styles to Headings 1-10 paragraph styles has been disabled. Presumably, this change was made to avoid confusion with the Outline Numbering dialog. However, the change means that this second option now requires additional work to obtain the same results that you can get much more easily with Outline Numbering. This second option is much better kept for lists within the text of a document, which is what it is designed for.
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