So if I'm creating assets for my game in another software like Blender, something like a house or generic rocks or walls, would I apply my textures in Blender or would I use Unity? Do they both work together?
I'm not sure what you're trying to ask. You could apply textures in Blender if you want to see what it looks like, but if you're exporting and importing into Unity you'll need to import the textures manually into Unity as well. Textures don't import with the model into Unity.
