Scratch orgs are short-lived, disposable Salesforce environments for isolated development and testing. They are created from a Dev Hub and torn down when you are done, so each piece of work can start from a clean org.
Create one in Serpent
Open the Scratch Orgs screen with the "Try it in Serpent" button above, then:
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Start a new scratch org
From the Scratch Orgs list, open the New Scratch Org dialog.
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Choose a definition
Pick the scratch org definition that sets the org's shape and features.
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Set the duration
Enter how many days the org should live in the duration field before it expires.
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Create the org
Submit the dialog and Serpent creates the scratch org from your Dev Hub.
What you need
Scratch orgs are created from a Dev Hub, so a connected Dev Hub is a prerequisite. Managing the Dev Hub is covered in Dev Hub Management, and reusing scratch orgs efficiently is covered in Scratch Org Pooling.