This is a piece of leather with stitched writing.
How to make this:
Write or draw your design on a normal piece of paper and stick it on the leather with tape, make sure it doesn't move. (You can also use a sturdy fabric, if you want to do it on stretchy material, back it with a heavier backing.) Then run over your design through both paper and material with a sewing machine, that's the trickier part, it takes a bit of practice, use a cheaper fabric to start with. If you come to a sharp turn, put your needle down in the material, raise the foot, turn, lower the foot and keep on going. You might have to adjust the tape during sewing. When you`re done with sewing, just rip the paper off and your design is on the material.
I love the look of stitches, you can make lots of beautiful different creations using this technique.