Prerequisites:
SharePoint Online Management Shell: https://www.microsoft.com/en-us/download/details.aspx?id=35588
PnP – PowerShell Cmdlets: https://github.com/officedev/pnp-powershell/releases
PowerShell Script:
Open SharePoint Online Management Shell and execute the following script.
## Connects to a SharePoint Site
Connect-SPOnline -Url https://c986.sharepoint.com -Credentials (Get-Credential)
## Creates a neww list
## List Template Type: https://msdn.microsoft.com/en-us/library/office/microsoft.sharepoint.client.listtemplatetype.aspx
## Optional Parameters - OnQuickLaunch, EnableVersioning, EnableContentTypes
New-SPOList -Title "Custom Doc Library" -Url "CustomDocLibrary" -Template DocumentLibrary -OnQuickLaunch -EnableVersioning -EnableContentTypes
##Disconnects the context
Disconnect-SPOnline