In the context of Statutory Biodiversity Net Gain, "Creation" refers to replacing an existing habitat with a new habitat, which can happen either by an existing habitat being lost, or by an existing habitat being changed such that it no longer exists in the way that it did.
Because creation involves the loss of existing habitat, it can be a more complex and risky process than enhancement. (Though this can depend on context: for example, creating grassland where there was previously developed sealed surface.) You may therefore wish to consider Enhancement options before Creation options. Government guidance states that you should "ensure [you] have the expertise available to achieve the desired intervention within the required timescales."
Any created habitats which provide meaningful net gain to your development are called "significant" and you have to agree to a legal mechanism that requires you to maintain the enhancement for at least 30 years. This mechanism can either be a Section 106 order, or a new instrument called a "Conservation Covenant". In either case, you will have to set out how you intend to enhance the habitat, and how you will ensure you can maintain it over the 30 year period.