manuals: improve documentation for TEMPLATECONF

diff --git a/documentation/dev-manual/common-tasks.rst b/documentation/dev-manual/common-tasks.rst
index b228c75aab..20d2fc4109 100644
--- a/documentation/dev-manual/common-tasks.rst
+++ b/documentation/dev-manual/common-tasks.rst
@@ -6432,10 +6432,10 @@  files (i.e. ``local.conf`` and ``bblayers.conf``) that are created in a
 new build directory.
 
 The OpenEmbedded build system uses the environment variable
-``TEMPLATECONF`` to locate the directory from which it gathers
+:term:`TEMPLATECONF` to locate the directory from which it gathers
 configuration information that ultimately ends up in the
 :term:`Build Directory` ``conf`` directory.
-By default, ``TEMPLATECONF`` is set as follows in the ``poky``
+By default, :term:`TEMPLATECONF` is set as follows in the ``poky``
 repository::
 
    TEMPLATECONF=${TEMPLATECONF:-meta-poky/conf}
@@ -6450,7 +6450,7 @@  list of BitBake targets when running the setup script.
 
 To override these default configuration files with configurations you
 want used within every new Build Directory, simply set the
-``TEMPLATECONF`` variable to your directory. The ``TEMPLATECONF``
+:term:`TEMPLATECONF` variable to your directory. The :term:`TEMPLATECONF`
 variable is set in the ``.templateconf`` file, which is in the top-level
 :term:`Source Directory` folder
 (e.g. ``poky``). Edit the ``.templateconf`` so that it can locate your
@@ -6490,7 +6490,7 @@  either of the setup scripts::
 
 Changing the listed common targets is as easy as editing your version of
 ``conf-notes.txt`` in your custom template configuration directory and
-making sure you have ``TEMPLATECONF`` set to your directory.
+making sure you have :term:`TEMPLATECONF` set to your directory.
 
 Conserving Disk Space
 =====================
diff --git a/documentation/ref-manual/structure.rst b/documentation/ref-manual/structure.rst
index 262b041ea6..12a085552f 100644
--- a/documentation/ref-manual/structure.rst
+++ b/documentation/ref-manual/structure.rst
@@ -261,7 +261,7 @@  OpenEmbedded build system creates it from ``local.conf.sample`` when you
 :ref:`structure-core-script`.
 
 The source ``local.conf.sample`` file used depends on the
-``$TEMPLATECONF`` script variable, which defaults to ``meta-poky/conf/``
+:term:`TEMPLATECONF` script variable, which defaults to ``meta-poky/conf/``
 when you are building from the Yocto Project development environment,
 and to ``meta/conf/`` when you are building from the OpenEmbedded-Core
 environment. Because the script variable points to the source of the
@@ -278,7 +278,7 @@  file, it uses ``sed`` to substitute final
 
 .. note::
 
-   You can see how the ``TEMPLATECONF`` variable is used by looking at the
+   You can see how the :term:`TEMPLATECONF` variable is used by looking at the
    ``scripts/oe-setup-builddir`` script in the :term:`Source Directory`.
    You can find the Yocto Project version of the ``local.conf.sample`` file in
    the ``meta-poky/conf`` directory.
@@ -300,7 +300,7 @@  you ``source`` the top-level build environment setup script (i.e.
 :ref:`structure-core-script`).
 
 As with the ``local.conf`` file, the source ``bblayers.conf.sample``
-file used depends on the ``$TEMPLATECONF`` script variable, which
+file used depends on the :term:`TEMPLATECONF` script variable, which
 defaults to ``meta-poky/conf/`` when you are building from the Yocto
 Project development environment, and to ``meta/conf/`` when you are
 building from the OpenEmbedded-Core environment. Because the script
@@ -315,7 +315,7 @@  Once the build process gets the sample file, it uses ``sed`` to substitute final
 
 .. note::
 
-   You can see how the ``TEMPLATECONF`` variable ``scripts/oe-setup-builddir``
+   You can see how the :term:`TEMPLATECONF` variable is defined by the ``scripts/oe-setup-builddir``
    script in the :term:`Source Directory`. You can find the Yocto Project
    version of the ``bblayers.conf.sample`` file in the ``meta-poky/conf/``
    directory.
diff --git a/documentation/ref-manual/variables.rst b/documentation/ref-manual/variables.rst
index f8808cc052..9020068dc4 100644
--- a/documentation/ref-manual/variables.rst
+++ b/documentation/ref-manual/variables.rst
@@ -7899,6 +7899,21 @@  system and gives an overview of their function and contents.
       toolchain. You can use ``meta-sourcery`` as a template for adding
       support for other external toolchains.
 
+   :term:`TEMPLATECONF`
+      Specifies the directory used by the build system to find templates
+      from which to build the ``bblayers.conf`` and ``local.conf`` files.
+      Use this variable if you wish to customize such files, and the default
+      BitBake targets shown when sourcing the ``oe-init-build-env`` script.
+
+      For details, see the
+      :ref:`dev-manual/common-tasks:creating a custom template configuration directory`
+      section in the Yocto Project Development Tasks manual.
+
+      .. note::
+
+         You must set this variable in the external environment in order
+         for it to work.
+
    :term:`TEST_EXPORT_DIR`
       The location the OpenEmbedded build system uses to export tests when
       the :term:`TEST_EXPORT_ONLY` variable is set
diff --git a/documentation/toaster-manual/setup-and-use.rst b/documentation/toaster-manual/setup-and-use.rst
index 1e1a314d66..72a15b5f2d 100644
--- a/documentation/toaster-manual/setup-and-use.rst
+++ b/documentation/toaster-manual/setup-and-use.rst
@@ -311,7 +311,7 @@  Perform the following steps to install Toaster:
     migrations). The next line sets the Toaster root directory
     ``TOASTER_DIR`` and the location of the Toaster configuration file
     ``TOASTER_CONF``, which is relative to ``TOASTER_DIR``. The
-    ``TEMPLATECONF`` value reflects the contents of
+    :term:`TEMPLATECONF` value reflects the contents of
     ``poky/.templateconf``, and by default, should include the string
     "poky". For more information on the Toaster configuration file, see
     the ":ref:`toaster-manual/reference:Configuring Toaster`" section.