Not dumb when you ask questions! Sounds like you are using Softaculous to install ZenPhoto. I just did a test install. Attached is a screen capture of my installation. Don't bother to look for it, files and database have been deleted.
I don't know if I'm supposed to put it in a directory and if so, is this a directory that I've created
This is the name of the directory where you want ZenPhoto to be installed. This will be created for you.
It has a line for administrator email. Do I change what's there to an email I use? Right now it's showing admin@mydomain. I've never used that.
You can change the admin@... to whatever emailadress you want. - Use your current email address.
Under the advanced tab, it shows a database name. Do I use what's there and if so, do I have to have to give it a password? There's no line for password so would I have to create one some place else?
Database is created for you. You can ignore this part but should probably record what is there.