What putty is and where it fits
Wall putty is a fine white powder that is mixed with water into a smooth paste and spread thinly over a wall with a blade.
Its job is to make the wall flat. Plaster and gypsum come out of the wall reasonably straight, but never perfectly smooth. There are trowel lines, small hollows, sanding marks and joints. Putty fills all of that.
It goes on in this order. Any big repairs first, like filling cracks or holes. Then putty, in one, two or three thin coats. Then sanding. Then primer. Then paint.
It is not the same as filler. Filler goes into a specific hole. Putty goes over a whole surface.
