A local variable is only available within the scope of one instruction sequence.
New local variable is defined when placed in valid instruction sequence.
Only instructions placed after local variable definition can access that variable.
Set variable instruction is dragged directly from context menu (right click on definition tile).

Notes

CollapseYlands - Editor
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Script tiles	Game, Entities, Game Logic, Logic, Loops, Instructions, Number, Vector, Color, String, Array
Misc	WIKI FAQ