Both of the above are good responses.
The trouble is "properly" is subjective and varies by application. You'll need to learn what the features do. Then with some advice like that of the other answers you set it up for your application.
I've done that very task many times at my kid's school for their programs. Some have been relatively large productions with multiple hanging mics, handhelds, piano, CD, with outputs to a video camera which drives a closed circuit TV system and the speakers. I use the exact same model.
To set it up properly you'll also need the correct connectivity. I'm guessing by the number of microphones you've listed you have a reasonably large audio mixer, 16 channel or there about. I would set up the dbx as an insert. Your mixer probably has an insert loop. You'll need the appropriate wires. A pro sound or music store can help you acquire them if needed. They look like a Y cable but are wired in a special way. What happens is the audio leaves the mixer, goes through the dbx and back in, before the main mix output. That way you can set up your mixer levels and dbx to perform as they should and retain complete control of the main mix level separately. The rear level button for this configuration would be +4.
For a school performance you don't need the gate or expander. But you can use the gate to mute low level audio to avoid noise if you like.
Dave B's method takes advantage of the automatic mode. It works, and pretty well, but I'd set it up for manual control.
Main mix level for this set up doesn't matter if you use the dbx as an insert as above.
From left to right...
expander/gate:
set threshold all the way to off.
SC enable off
set ratio mid way
set contour off
compressor:
threshold - save this for later
over easy ON
I would set ratio to about 5:1
attack mostly fast, around "8 o'clock"
auto off
release - "2 o'clock"
output gain 0
bypass off (when on the compressor does nothing)
peak stop +20 (for now)
stereo couple on is probably best.
with stereo couple on the channel 2 settings do nothing. Or you can set the channel 2 settings the same and turn stereo couple off. Get channel one set up first.
Now get some audio going at 'normal' level. Get someone speaking or play an audio CD at about the level you would run the microphones. Watch the three lights at the threshold knob. Adjust threshold so that the middle yellow light blinks only on the peaks like a drum beat. Your gain reduction meter will move slightly. Levels below this point will have no compression. Above this point the compressor becomes active.
Now turn up the source louder to where the gain reduction level is active in the mid point around 15. Slowly reduce peakstop until the 'above' light just blinks on the peaks (again on the beat)
that's it
Adjust output gain if needed to give a good output level with your main mix at it's nominal position.
After that use your eyes and ears to tweak.
I highly recommend a feedback controller too, like the Behringer DSP1124. That takes a while to learn how to use but works great. Convince the school to get one. Nothing spoils these performances like feedback and there always seems to be one performer that just isn't loud enough and you'll end up with feedback because you have them cranked up so high.