Windows 10 - want to create a VM and install windows server 2012 R2

Assuming you have Windows 10 Enterprise, Professional, or Education yes you can add the hyper-v role.

https://docs.microsoft.com/en-us/virtualization/hyper-v-on-windows/quick-start/enable-hyper-v

then create a VM

https://docs.microsoft.com/en-us/virtualization/hyper-v-on-windows/quick-start/quick-create-virtual-machine

using the free 2012 R2 evaluation ISO available here.

https://www.microsoft.com/en-us/evalcenter/evaluate-windows-server-2012-r2

Yes.