Follow the steps below to watch a replay offline:

Open Steam. Right click on the game Dota 2 in your library.

Select Properties. Click on Set launch options.
Type -console. Click on OK.
Open Dota 2.
You should be seeing the console window in addition to the normal display.
Type playdemo replays/replay-id.dem
Press enter. Enjoy!

Replay-id is the name of the replay you want to play. It is usually a number like
563581. If you have a lot of replays then it's convenient to rename the replays as
1, 2 etc. In this case it'll be a simple
playdemo replays/1.dem

To rename the replay follow the steps below:

Go to Steam[not the application; the place where you installed it. C drive in most
cases. Program Files(x86)].
Open SteamApps.
Open common.
Open Dota 2 beta.
Then Dota folder [not the application].
Open replays.

You should find all the replays there in the form of DEM files. Rename them.

To watch a replay online:

Open Dota 2. Click on watch.

Select download(last option).

You should be seeing a list of all the replays you have downloaded. Click on watch
replay.

Hope this helped!