Check the following video to learn how to create a blog page using the layout you want:

Note that if the blog page that uses a ‘Blog Page’ template is also selected under settings reading, then the page template settings will not work. The options from Content Settings will have the priority.

The options below work for blog page selected under Settings->Reading :

If you are using the list view on your blog page, then you may want to show just the excerpt  or the whole post content. You can control that by using  the following option: