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I get so furious with Microsoft. Having wasted hours looking for a solution that will allow me to create aliases on Outlook 16 I cannot find any easy solution. Creating different e-mail accounts just creates lots of clutter and wasted time when all I want to do is have ONE inbox yet have the facility to use different e-mail personas for sending and receiving for the different aspects of my business. For a multi-billion dollar company it reflects poorly on the needs of its clients.
You actually create the aliases via your online account. (This assumes it is a Microsoft account - outlook.com, live.com, or Hotmail.com) Sign into outlook.com and create your alias via the "Settings" gear icon, "Connected Accounts" item. Create your desired alias(es).
At this point, when you go into Outlook 2016 and compose a new message (or reply to an existing one), your "from" button will be a dropdown list of the accounts which can be used to send the mail, including the alias(es) added on outlook.com.
At least, that's how it works for me.