It depends what you are trying to do...
1. you can create an empty controller and then you do not need to select the Model and Context. you write the Add/Edit/Delete functions yourself and their views.
2. you can create a controller with read/write action and views - this way you get these functions Add/Edit/Delete + views done for you automatically:).
The Context is (as I understand it) the reference to the database.
if you havent already you should add your model classes that you want to create as tables in the database to the YOUR-PROJECTNAMEContext.cs file under DAL folder. this will create the tables for you (if I didn't forget anything). you shoula add somethis like:
public DbSet<Note> Notes { get; set; }
where Note is your class for example and Notes is your table name.
now if you want to create a Controller for you notes class in the model and let MVC to do for you the ADD/Edite/Delete function and views than your model is: Note and Context is YOUR-PROJECTNAMEContext.
Hope it will help.