The Properties: Numbering feature is how you apply autonumbering to a paragraph tag. Note that the Autonumber box is checked. In the box under this checkbox I put in the following:

H:<$chapnumb>.<n+>/t

• H designates the numbering series, I chose "H" for heading. In the same document, I have an "F" series for figures and a "T" series for tables (among others).
• <$chapnumb> tells Frame to place the number of the current chapter in the Heading 1 paragraph in the document.
• The period (.) tells Frame to write a period.
• <n+> tells Frame to write the proper sequential number of this numbered paragraph after the period (in other words, the first Heading1 paragraph in a document would have a 1, the second a 2, etc.).
• \t tells Frame to put in a tab.

This is how the paragraph is displayed in the documen, since it's in the first chapter and is the second paragraph with the Heading1 tag in that document:

1.2 Chemical Safety

You can change the order of the numbers, or make them letters, or add text. If you want any of the text or numbers to be displayed in a font or style other than the default paragraph font, you use the building blocks - character tags - to change the font or style.