The VideoLAN Forums

Is there a way to set chapters in an mp4 file? Will the chapters be compatible to dvd like how dvd players go to certain scenes by the chapters you set?

It's possible, but you'll have to use the command line interface. See: https://wiki.videolan.org/VLC_command-line_help

Hit Ctrl+ F to open the Search option in your browser and then type: Scene and hit the down arrow key in the browser Find utility. This will take you to the relevant section.

More help can be found in https://wiki.videolan.org/Command-line_interface/ and https://wiki.videolan.org/Console/