I am signed in as the administrator with my email email@example.com with microsoft.If i need to sign in to local account do I have to create a password or not. If I do can I use the same one for windows administrator account @live.com. Also what is the difference between the 2 accounts?
You may use just about anything as a password and it may be the same as your @live.com one.
A login using a Microsoft account will allow many settings to be synchronized with other devices that use the same account. It is also more difficult to get to your data if one doesn't know that password.