Think of building a house.
The Schema is the Blueprint. It says "The kitchen will be here, the bedroom will be there." Once you build the house, you don't move the kitchen every day. The Schema is static (it rarely changes).
The Instance is the furniture and people inside. One day you have a sofa; next week you replace it. One moment 5 people are in the kitchen; the next moment it's empty. The Instance is dynamic (it changes constantly).
In a database, CREATE TABLE Student... is the Schema. The actual list of student names (rows) right now is the Instance.
You need a solid plan (Schema) before you build, but the contents (Instance) will grow and shrink every day.
Think of a classroom. The empty seats and the rule "30 students max" is the Schema. The actual kids sitting there right now is the Instance.