1. What is the use of home partition in Ubuntu and what does it contain?
  2. Can I create separate partitions for my personal stuffs? If yes, how to do that?

Usually /home directory is the directory where users keep their private files. Every user has a directory with his/her name in the home. For instance /home/user1, /home/user2, etc.

Every directory in Linux can be a directory or a separate partition. It is different as in Windows where partitions are usually a separate drive letter, although it is possible to mount a partition as a directory in Windows for more than 15 years.

In Linux you have a root (/) directory and all directories are descendants of /. You can have /home directory on another partition or disk or you can have /home only as a /home directory on the /. You can also put /home/user1 on a separate partition as /home/user2. It is up to you how you want to organize it. The partitions and their mount points are in the /etc/fstab file. That means that /etc cannot be mounted as a separate partition.

Some like to have /home on a separate partition because they know exactly how much space they have. System files which are on a different partition cannot take the space reserved for /home. Others like only one partition because they don't want to make many partitions, which may be to big or to small.

There's a lot of info how to make the partitions:

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