The term means that an ornament was created without the assistance of a mold. The glass blower is totally in control, heating, blowing, pulling and shaping the ornament into the desired form.
This is the way the majority of glass ornaments are produced. The glass blank is heated, some air puffed in to create a big bubble, then it is placed in the mold and pressed.
Both free blown and mold blown ornaments would therefore be "mouth" blown.
No ornaments are "hand" blown ... since you can't blow with your hands.
Source: Connie Porcher of Celebrate 365