When I create a new project with API14 as minimum, then there is no values-21 or values-22 folder in my project. I don't see any styles.XML anywhere, so how should I put in XML code for just Lollipop?
I use Android Studio 1.0.1, and I have SDK 21, 21.1.1, 24.0.2 installed.
You are changing values in file which is generated by Android Studio, so it is changed every time you build your project. All files inside build folders are generated and there is no need in changing them. Instead you should put your values in values. xml under app->src->main->res->values .
The res/values folder is used to store the values for the resources that are used in many Android projects to include features of color, styles, dimensions etc.
Updated: Since API 22 has been released. API 23 is the same idea.
Right click the RES folder

Then type values-v22 as the directory name and choose xml as the resource type.

If you do NOT see the values-v22 show up, click the Project pulldown at the top of the screen like so. e.g. Change from Android to Project

Now right click styles.xml in the values folder and choose copy

Now right click the values-v22 folder and click paste.

You should see this popup

Click ok
At this point you should be good to go.
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