Hi June, I have done some needle felted pictures, but not animals. You don't use water, that is something different, called wet felting. Best to look at some videos. You could do it on a tray on your knee. You will need a lump of foam to work on, special needles with a barb, and some different coloured merino wool depending on what you are making. The wool can be a bit expensive, try craft shops for small amounts. Basically you start with squashing a ball of white wool into a basic shape, then add layers of colour, felting it as you go with the needle. Usually a single needle is used for this. Be careful not to stick your fingers, they are very sharp.
Have a look at this video, how to make a dog.
https://youtu.be/raii6SWw3yY
ilona