"Home base" is a keep + village, for a barony, or a walled town, for principalities or kingdoms. The central d6 (first set/color) tells us if we should downgrade or upgrade the size of home base:
|1 or less||hamlet||village||outpost|
|2 to 5||village||town||hamlet|
Note that there will only be one town maximum in a barony and one city maximum in a principality, and these will always be the home base. A kingdom will have at least one city, though, so if home base is a city, there will be two cities in the kingdom.
The second set of 4d6 dice rolled are interpreted as four roads leading away from home base to a hamlet at the edge of each road. The number rolled on each d6 is the number of hexes distant the hamlet is from home base; the position of the die relative to the first d6 shows the direction to that hamlet. If a 6 is rolled, that hamlet is upgraded in size to a village. Optionally, you can use the "Road" column on the table, which gives the possibility of a hamlet being downgraded to an outpost of some kind: inn, watch tower, single family farm, hermit hut.
Because this step uses only six-sided dice and the previous step does not use six-siders at all, these two steps can be combined to reduce the number of die rolls/steps.