Just to add a little to what has been said, you may add as many separately hosted domains to your DH account as you’d like, they will all be placed into your home user directory in whatever folder structure you would like for them to be in. You may have each in a completely separate folder, or you may place folders within folders… totally up to you.
home/dwr/ would be where my domains would be hosted. I could have, say three domains each with their own directory as such
When creating these directories in the Manage Domains of my DH panel, all I would have to do is create the domainone (or two or three) part… it would automatically be placed into the home/dwr/ location by the panel, because that is my account’s place on the server.
If I were to have a domain AND a subdomain off of it, I would have a couple of options… I could have it set up as
home/dwr/domainone for the main and
home/dwr/subdomain for the sub, or I could choose to go the route of
home/dwr/domainone/subdomain if I want.
Hope that helps to visualize. One you get to playing with it yourself though it should all make BEAUTIFUL sense, and you will probably find it to be the most simple and commonly sensed way of setting up domain directories that’s possible!