Android SDK Manager is an Android software Development Kit manager, like a bridge to connect to local and server, download Android development tools from the server to the local.
The AVD Manager is an Android virtual Drive manager that is used primarily to create an Android simulator (ie, a mobile phone simulator). Of course, the image required by the Android emulator (an operating system that can be interpreted as a simulator) is downloaded through the SDK manager.
For the use of SDK Manager and AVD Manager, a basic toolkit for tools is also required to provide support.
Installation: HTTP://TOOLS.ANDROID-STUDIO.ORG/INDEX.PHP/SDK
After downloading, extract android-sdk-windows to the directory you need, I use the directory is D:\Android\android-sdk-windows
To configure the ANDROID-SDK environment variable:
The Android_home variable value is ANDROID-SDK's extract directory, my configuration is D:\Android\android-sdk-windows
The last append of the value of path path variable;%android_home%\tools;%android_home%\platform-tools;%android_home%\build-tools;
See the blog in more detail: http://www.cnblogs.com/kangjianwei101/p/5621238.html (very good blog)
Android SDK Manager Configuration