Z Axis
While 2D shapes are made from sheet material, 3D shapes are more intricate
shapes made from block material. To create 3D shapes you draw 2D shapes and add
various "Z" values to lines - the distance the material will extend
perpendicular to the 2D drawing. Z values are set in the Z control of the numeric bar (located just below the main toolbar):

The examples below are shown with inch Z values next to each line. For size
reference, the outer dashed square is 4 x 4 inches. The 2D drawings with the indicated
Z values result in the 3D shapes shown to the right of each drawing.
A simple example using one positive Z value. The square is 3 x 3 inch. A Z value of 1 creates a block 3 x 3 x 1:

Now let's add a second positive Z value and a two negative Z values. Notice
that positive Z values create protrusions and negative Z values create recesses:

To cut fully thru, set the Z edit control to "Air Inside".

Z values can also apply to more intricate 2D shapes:

A simple 5-side box enclosure:

Z values can apply to shapes drawn in views other than the Top view. Here we
select menu View | Front, add two circles and apply Z values:

Setting Z to Air Outside in a side view provides an additional way to create numerous shapes. To
create this pipe spacer draw a circle in the Top view and set Z as
shown. In a side view (e.g. Front) draw the shape shown by the dark
line and set Z to Air Outside. The Air Outside setting specifies that
all material outside the line should be removed.


Advanced tips
Shapes to be made on a lathe should use the
Revolve
feature of the Z control.
For drilled holes, Z measurement is taken from the end of the cylindrical
portion of the drill bit, not the tip of the conical portion.
For threading lines, Z measurement applies to thread depth/length and must be positive both for protrusions and holes. Use the Maximal setting to get the maximum thread depth/length value permitted by standard tooling.
For outermost lines, if there are protrusions
on the bottom view, measurement for Z is taken from the far edge of the outermost line in the design.