Villages can range anywhere from just you, your house, and a small farm, to a huge town with dozens of houses, mines, farms, and other things.
It is wise to invest in the Yeomanry skill to protect your settlement. With yeomanry, you can build a Claim. This prevents anyone from entering the claim's radius, unless they make use the trespassing skill (which incidentally would leave scents for experienced rangers to follow). This can deter some thieves and protect your belongings.
WARNING! THIS IS NOT A VILLAGE! This is only a small personal claim surrounded by a palisade.
Tips on building base:
Dont build near water,they will make it an easy target for raiders.Just build next to a well away from a river or lake.(optional)
When beginning to build a base,it is wise to make a claim and surround your house and other belongings with a round pole fence,instead of a gate place a hearthfire on it's place,making only you can get in and looters would need the skill Vandalism to get in,making it safer.(Add a example picture other editors please)
If you have a palisade and a cave/minehole in your base,make sure to wall it off separately,since other people can build a minehole outside your base,and tunnel to your minehole/cave and get in your base and loot the flip out if it.