Magento blog is not included in default setup however, it is very easy to setup. You can get the extension for the same from Magento Connect or can search Google for the same. There and many extensions available in the market with different functionality and you can choose one based on your requirements.
Other than paid extensions available in the market you can also use popular free extension Magento Blog – Community Edition. You can install the Magento Blog extension using Magento Connect. In order to install the Magento Blog extension you need extension key and enter it in Magento Connect for your website.
Once installed you will find one additional section in Magento administrative area top menu called Blog. From new Blog section you can adjust the newly installed Blog settings, add posts etc.
Note: If you get access denied when trying to access the blog extension for the first time after installation try to log out Magento administrative area and then log back in. This should rectify the issue.
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