Health is the amount of Damage an Invader or Dahan can take before it is Destroyed.
Explorers have 1 Health.
Towns and Dahan have 2 Health.
Cities have 3 Health.
When Towns or Dahan take just 1 damage, flip them over to indicate that they aren't on full Health.
When a City takes 1 damage, lay it on its side with 2 buildings facing up. When the same City takes another damage, lay it so that 1 building is facing up.
During Time Passes, all damage goes away, so remove any Energy Markers indicating damage and flip over any damaged Towns and Cities.