A self-signed certificate is signed by the same entity that created it, rather than by a recognized certificate authority.
Why Browsers Warn About Them
Since there's no trusted third party vouching for it, browsers can't verify a self-signed certificate's legitimacy, and display a security warning by default.
When They're Actually Fine
Internal development environments, testing setups, and private networks not accessed by the public are all reasonable uses, since the people accessing them can knowingly accept the warning.
Never Use Them for a Public Website
For any site real visitors reach, use a properly issued certificate (free options like Let's Encrypt remove any cost excuse) — the security warning alone will drive away nearly all legitimate visitors.
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