What are resource files?
The Resource files are the files which contain program resources. Many programmers think that resource files are used only for storing strings. But you can also store fonts, bitmaps, icons, wave files into resource files.
In order to generate the resource file you require click on tools - generate local resource as shown in the below figure. Always remember to keep page in designer view or else you will not see the option. Once you create the resource file you will see the resx file generated in the solution explorer.
Figure: - Generating resource files using IDE
If you see the resource file it have basically key and the value for the key.
Figure: - Resource file in action
If you see the figure above the key is basically the object name. You can view the Label1 has some value stored in the resource file.