Action doesn’t create any scripts, doesn’t create any files and doesn’t make any actual changes on it’s own. It’s just the URL that you’ll be sent to on submit. If your page is on http://test.com/test.php, and your action is action="way/to/your/script.php", then you’ll be sent to http://test.com/way/to/your/script.php. If that script doesn’t exist, you’ll get a 404 erorr.
As for the method, it’s about how your data is sent. You can either send it over GET, which means all of your variables are sent in the URL it’self (and PHP will have to retrieve them through $_GET), while POST will send the data as a payload of the request itself, not in the URL. It’s more secure and you can send more data. PHP will have to access this through $_POST
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