While Android Studio will normally let you know when you need to update something, you can also manage updates to the SDK manually via the manager. You’ll find this in Android Studio if you ...

A new release, dubbed Android 5.1.1 appears to be in the works if a recent sighting in the Android SDK Manager is to be believed.

Note: Install Android SDK (Android 4.4.2 KitKat) on the computer using the tutorial here. The installation of Android Wear SDK should be only after installing and setting up the main Android SDK.