Understanding Multiplayer Blueprints and functionality

Hello everyone,
i found a “playlist” that helped me alot tho. But i have still some questions about it.

The youtube playlist by UnrealEngine

I’m using the third person blueprint and i want to make a “PlayerBlueprint” with all inputs and so on.
I’m using the already existing “ThirdPersonBlueprint”. Using it as a “Client” it works perfectly. But when i check “Use Dedicated Server” under the “Play /”. I’m spawning and not playing that “Character” in the UE4 Editor. Am i spawning the “ThirdPersonBlueprint” by using “Dedicated Server”?

I’m also not sure when i should make blueprints inside a level editor and when i should use classes etc.
When i’m creating a “Damage” function, this should be in the characters/objects blueprint? Like Monsters etc? Or inside the level blueprint?

Level Blueprint is used for doing stuff for that specific level. Like playing a Matinee sequence or creating event bindings for Actors that are already placed on the level. Each Level Blueprint is unique to that specific level and any functionality created in there will only exist in that level.

As for damage function there can be two types of damage functions. Giving Damage and Receiving Damage. A weapon for example will Give Damage where as a character will Receive Damage. So basically in Unreal, you will create a weapon class that calls ApplyDamage on a character and character will run TakeDamage function. Inside that TakeDamage function you can reduce the player health and make him die if it reaches 0. But all this depends on your game project. In the end all actors can give damage and receive damage. For example you can tell the weapon to take damage and break if it reaches a specific threshold or a human torch that deals damage around him overtime.