>>719918907
It varies throughout the franchise because it's pretty much a multiverse.
The most common explanation is that the Digital World is a separate dimension, with it and everything inside it, including Digimon, made up of data. It tends to always have existed, but humans only came into contact with it once they made the internet.
Humans can go to the Digital World, and Digimon can manifest in the Real World. The rules can differ slightly from anime-to-anime, game-to-game.