I am quite surprised that no one mentions here what I am about to mention, which it by the way the very definition of universal property, but anyway. I will give you the first example of universal property I saw when I was a kid that was coined as "universal property" to me, and then move to the explanation of what a universal property actually is.
It was of course taught to me with general groups and normal subgroups, but I will for simplicity use abelian groups, which I prefer to call $\mathbf{Z}$-modules. So let $M$ be a $\mathbf{Z}$-module and $M'$ be a sub-$\mathbf{Z}$-module of $M$. We can define a equivalence relation $\mathscr{R}$ on $M$ as follows : for $m_1,m_2\in M$ we have $m_1 \mathscr{R} m_2$ if and only $m_1 - m_2 \in M'$. Note $M/\mathscr{R}$ the quotient set, and $\pi : M \to M /\mathscr{R}$ the canonical map sending an $m\in M$ to it's equivalence class $\pi(m)$. For elements $\xi_1 = \pi(m_1)$ and $\xi_2 = \pi(m_2)$ of $M/\mathscr{R}$ one sets $\xi_1 + \xi_2 := \pi(m_1 + m_2)$ and one immediately verifies that this definition does not depend on the representatives chosen for the $\xi_i$'s. For $n\in\mathbf{Z}$ and an element $\xi = \pi(m)$ of $M/\mathscr{R}$ one sets $n\xi := \pi(nm)$ and one immediately verifies also that this definition does not depend on the representative chosen for $\xi$. This two definitions give us a structure of $\mathbf{Z}$-module on $M/\mathscr{R}$, and we note now $M/M'$ this $\mathbf{Z}$-module. I was taught that $M/M'$ and the morphism $\pi$ had (I guess that they still have now) the following universal property : for each $\mathbf{Z}$-module $M''$ and each morphism $f : M \to M''$ such that $M' \subseteq \textrm{Ker}(f)$, there exist a unique application $g : M/M' \to M''$ such that the following diagram is commutative :

(Sorry to have to use pictures, but diagrams here are a bit painful (see this), and moreover, as of now there is simply no way to have diagonal maps with a name near the arrow in the "authorized" diagrams ...)
Now, from this set-up, I can get a covariant functor $F : \mathfrak{Mod}_{/ \mathbf{Z}} \to \mathfrak{Set}$ from the category $\mathfrak{Mod}_{/ \mathbf{Z}}$ of $\mathbf{Z}$-modules to the category $\mathfrak{Set}$ of sets by setting, for each $\mathbf{Z}$-module $M''$ : $$ F(M'') = \{f\in\textrm{Hom}_{\mathfrak{Mod}_{/ \mathbf{Z}}} (M,M'')\;|\;M' \subseteq \textrm{Ker}(f)\},$$ (I let you guess how you define $F$'s action on morphisms) and this functor $F$ has a nice property, that the following categorical interlude will define.
Let $\mathscr{C}, \mathscr{D}$ be categories and $F, G : \mathscr{C} \to \mathscr{D}$ be two covariant functors. A morphism of functors (or also a functorial morphism) $\varphi: F \to G$ consists in the data, for each object $X$ of $\mathscr{C}$ of a morphism $\varphi(X) : F(X) \to G(X)$ in $\mathscr{D}$ such that for each morphism $f : X\to Y$ in $\mathscr{C}$ we have the commutative diagram in $\mathscr{D}$ :
This allows to define what an isomorphism of functors is. A covariant functor $F : \mathscr{C} \to \mathfrak{Set}$ is said representable if it is isomorphic to the (covariant) functor $h_X : \mathscr{C} \to \mathfrak{Set}$ sending an $Y$ to $\textrm{Hom}_{\mathscr{C}} (X,Y)$ (here also I let you guess how you define $h_X$'s action on morphisms).
Now our previous functor $F$ is indeed representable as $f\mapsto f\circ\pi$ defines a functorial bijection $\textrm{Hom}_{\mathfrak{Mod}_{/ \mathbf{Z}}}(M/M',M'') \to F(M'')$. We're almost done, but something is weird.
Indeed, showing that a covariant functor is representable could seem titanic, as one has to find an $X$, and then for each $Y$ find a bijection, and a functorial one. But one key property simplifies everything. It is the
Yoneda's lemma. Let $X$ be an object of $\mathscr{C}$ and let $\psi : h_X \to F$ be a functor morphism. There exist a unique $\xi\in F(X)$ such that $\psi = \varphi_{\xi}$ where $\varphi_{\xi}$ is the functor morphism $h_X \to F$ defined by $\varphi_{\xi}(f) = F(f)(X)$.
Proof. Exercise ! ;-) $\square$
Thanks to Yoneda's lemma, we see that if $F$ is representable, we have a functorial isomorphism $\psi : h_X \to F$, which amounts to ask for an object $X$ pf $\mathscr{C}$ and an element $\xi\in F(X)$ such that $\varphi_{\xi}$ is an isomorphism, that is, such that $f \mapsto F(f)(\xi)$ is a bijection from $\textrm{Hom}_{\mathscr{C}} (X,Y)$ to $F(Y)$. One says that such a couple $(X,\xi)$ represents $F$.
Now our previous functor $F$ is indeed represented by the couple $(M/M',\pi)$. This is what strictly means the sentence "$M/M'$ and the morphism $\pi$ has the following universal property : for each etc". Having defined what "having a the universal property" means, I let you work out the definition of universal property.