You have to define them ahead of time ideally, but you can do them on the fly as well. The Bit Shift operates similarily to previous AB PLCs, but the Logix is Tag based rather than Address based. If you look at the Instruction Help under the Help Menu, there is some information there. Or you can refer to the Instruction Reference.
As mentioned creating tags is same as any other tags. Take note control tags for BSL can only be used in that instruction, for the array you can use any int, dint, etc tags