Koel reads all its settings from a file called .env. You copy the example file, then open it and fill in your database credentials and the path to your music folder. Use any text editor — nano is the easiest on a server.
$ cp .env.example .env && nano .env
What you should see
The .env file opens in nano. Find DB_CONNECTION, DB_HOST, DB_DATABASE, DB_USERNAME, DB_PASSWORD and fill in your database details. Find MEDIA_PATH and set it to your music folder, e.g. /home/youruser/music. Save with Ctrl+O, exit with Ctrl+X.
This might happen
You are not sure what to put for DB_HOST
If the database is on the same server, use 127.0.0.1. If you are using a managed database service, use the hostname they gave you.