To create a new Timeline, choose 'New Timeline' from the main 'Create' menu.

Enter a title for your new Timeline. Timelines can be based on a single chapter or span an entire series of books.

A new, blank Timeline window will open.

Begin by adding several new columns and rows.  Select the card in the bottom right-hand corner of the Timeline and click the down arrow icon.  This will add new rows to your Timeline.  Add one row for each one of your characters.  Click the right arrow icon to add columns or instances to your Timeline.

Now it's time to add your characters.  Double-click any row within the left-hand column.  The blinking cursor will appear, allowing you to type in your character names.

Color code your characters by double-clicking the top of any given card.  The color-selection dialog will open, allowing you to assign a unique color to each character.

Repeat this process for each character.

Once your characters are listed and color-coded, start adding instances.  Instances refer to the date or time specific columns running from left to right.

Double-click any column within the top-most row.  Moving from left to right add your own specific date or time instances.

Now that all your headers are in place, you can begin to add specific card captions.  As before, double-click your chosen card.  The blinking cursor will appear allowing you to enter your caption.

For an important date or time, you may wish to change the background color of the given column.  Liquid Story Binder XE allows you to change multiple cards and headers simultaneously.
Start by selecting multiple cards across multiple columns simply by dragging the mouse.

Right-click and choose 'Timeline Background'.

Notice how all the columns in the given range have been changed.  This same process can be used to change multiple timeline colors and captions.