Quick answer
Е = “ye”, Ё = “yo”. Ё is always stressed — if a word contains it, you already know where the stress is. In real books and signs the dots are usually left off.
ye / yo
How to say it
After a consonant both letters soften it: не = “nye”, нё = “nyo”.
The missing dots
Russians write ещё as “еще” and expect you to know. Dictionaries and children’s books keep the dots; newspapers and street signs do not. Davaigo always prints them, because for a learner they carry the stress.
When it changes the word
Все (everyone) versus всё (everything) differ only in the dots — and only context tells you which one a Russian newspaper means.
Typical mistakes
Stressing another syllable in a word with ё
ё is always the stressed one
There is no Russian word with an unstressed ё.
Reading е as “e” at the start of a word
“ye”
At the beginning and after a vowel, е carries a y in front: е́сли = “yesli”.
Check yourself
Which word contains Е?