Simply select the lantern in your hot bar and right click on an available space on top of a block or below a block. Go to the Crafting table. If I have I put a torch.
If I have I put a torch.
Once we were done we were adding details and I noticed that the builder put lanterns on a trapdoor that was attached to the walls. Move the Lantern. They can also be different items all together. Tie a sturdy loop at one end of the twine then slip it over the lanterns hanging device.