Templates are used for a variety of purposes in the Developer. They generate bubble text automatically for frames, determine the instructional text to be shown during Know It? mode playback, and control the example text given with string input events. You can customize these templates to reword the text or even translate it into any language not provided in the Developer.
Templates are stored in the /System/Templates folder in the Library. There is a subfolder for each supported language, named according to the language code.
Each folder contains two existing template sets, Standard and Microsoft. Each template has a template.xml file which contains the customizable text. These existing templates should not be customized, because when you upgrade to newer versions of the Developer, they are overwritten and your customizations lost. Instead, make a copy of one of the templates, rename it, and make your customizations to the copy.