Something that's homemade is created by a real person, usually in their own house, rather than being mass-produced. Your dad's homemade apple pie is the best you've ever tasted.
Your famous homemade chocolate chip cookies are likely to be a bigger hit at the bake sale than a box of ginger snaps dumped on a plate. And the homemade sweater you got for your birthday might be a little itchy, but it's special because your aunt lovingly knitted it herself, using yarn in your favorite color. Homemade things aren't just made at home — they're also usually made with more care than goods produced in factories.