With every protocol and service you need to understand, I recommend you configure it if at all possible.
There are many tools out there that allow you to configure network protocols, but today we will stick with Cisco Packet Tracer because it's free and convenient. I've made a configure Cisco Packet Tracer video you can watch for details. If you want to read up on DHCP theory then please read our Free Cisco CCNA Study Guide online.
Create Your Lab
Open Packet Tracer and drag two PCs to the canvass and one server. You can put a simple switch in the middle and add cables, but you won't configure the switch at all.
You can configure the PCs first. Just click on the PC icon, and you can get to the GUI. Click on Config then the Fast Ethernet interface and then tick the DHCP radio button.
Do the same for both PCs.
DHCP Server
Now it's time to configure the DHCP server.
All Packet Tracer servers can run multiple protocols. You can see the list under the services tab.
But first, our server will need a static IP address. Servers will almost always use static IP addressing in a network.
Add IP address 192.168.1.1, and the subnet mask will auto-complete.
Next, you can go over to the services tab and configure DHCP.
Some parts are optional, but we'll configure the DNS server and default gateway. You will want to exclude IP addresses also, but this feature is somewhat limited so we'll start our pool of DHCP addresses at 192.168.1.10.
If you are happy with your configurations you can press the Save button and then the On radio button.
Testing
Over on the PCs you should see the IP addresses allocated. If there is an issue, press the Static radio button and then the DHCP button again.
You can go into the command line if you want to check other settings.
The command you will want to use is ipconfig /all which prints the default gateway, DNS server, and other information.
And that's pretty much it for DHCP. Of course, you need to read all the theory, but for a simple lab, you are all set.
If you want to configure more protocols and services like this, then check out our 101 Labs – Cisco CCNA book on Amazon.
