There really is no right or wrong way, it's just a preference. I have a "site" skin I typically use and then an admin / host menu skin I use. Mainly cause the menu options for admin / host don't fit well in the skin for the general site. Just gives me more flexibility in placing things where I want. For example my admin / host skin is really cut down to mainly left menu and content pane, login controls. I killed all the footers, logo, right panes, etc. Is this needed nope just my preference. There is nothing special you have to do to have different skins for them. Just set the skin in the host settings / site settings and off you go.

Now for your remove the home and just have admin / host. Are you looking to just remove it from the skin so when you login as a admin / host you don't see Home even though it exsists in the site navigation? Or are you just wanting to get rid of Home all together?

Just set the home page to only be viewable by the admin, it will remove it from the menu of the typical user. You could also change which page is the "home" page in the site settings and change it to a different one then home and delete home completely. If Home has content you can change its name as well.