CNAME allows a machine to be known by one or more hostnames.  There must always be an A record first, and this is known as the canonical or official name.  For example:
yourdomain.com. A 192.168.0.7
Using CNAME, you can point other hostnames to the canonical (A record) address.  For example:
ftp.yourdoman.com. CNAME yourdomain.com.
mail.yourdomain.com. CNAME yourdomain.com.
ssh.yourdomin.com. CNAME yourdomain.com.
CNAME records make it possible to access your domain through ftp.yourdomain.com,  mail.yourdomain.com, etc.  Without a proper CNAME record, you will not be able to connect to your server using such addresses.
Entering a CNAME record
If we wanted home.yourdomain.com to point to yourdomain.com, we could enter the record in two ways:
home CNAME yourdomain.com.
The first method allows you to simply enter the subdomain. Do not put a period after the subdomain name.
home.yourdoman.com. CNAME yourdomain.com.
The second method requires you to enter the entire hostname, followed by a period.