“instance” is best understood as it relates to “class” in programming. “Classes” are used to define the properties and behavior of a category of things. E.g. A “Car” class might dictate that all cars be defined by their make, model, year, and mileage.
But you can’t provide specifics about a particular car (for example, that 1978 Chevy Impala with 205,000 miles on it that your uncle Mickey drives) until you create an “instance” of a Car. It’s the instance that captures the detailed information about one particular Car.