Torque maps use several different file formats in their assembly.
.dts files are static shapes
.dif files are interiors
.jpg files are used for textures
.dml files are used to indicate the order the textures are mapped onto the skybox
.ter files contain the terrain map
.wav or .ogg are used for background sounds
Static shapes are created through a variety of programs, including Milkshape, Blender, Shaper, and 3ds Max.
Milkshape- $25 US
Blender- Free
Shaper- $35 US
3ds Max- $3,495 US
Shapes are usually used to decorate maps, examples of statics include the light bulbs and windows in bedroom.
Interiors are created through Torque Constructor, QuArK, Hammer, and GtkRadiant. All of these programs are free. Interiors are usually large objects, and unlike static shapes, you can't drive through them and you can actually build them. An example of an interior is bedroom.
Textures can be created through any number of image editing programs. Some more prominent editors include Paint.NET, GIMP, Photoshop, Inkscape, and MSPaint.
You usually don't need to worry about editing .dml files, since you will most likely be using an existing sky in a map rather then making a new one. You can edit these in notepad, no special software is required. I wouldn't worry about them if you are just learning to map.
Terrain files are edited in-game through the mission editor.
Sound files can be edited through sound editing programs. I use Audacity, which seems to do everything I need it to do, and it is free. There are others though, you can pick whichever you like.
The mission file includes everything else, such as the positions of things, where the player spawns, what sounds are played, which sky is used, whether there is terrain or not, where the sun is, how bright it is, what color it is, and other things. You can edit it through the in-game mission editor.