Okay kiddo, so imagine you have a toy and you love playing with it so much that you never ever stop. You don't take a break to do anything else, like eating or sleeping or seeing your friends, you just keep playing with the toy ALL THE TIME.
Now, at first you might feel really happy because you're having so much fun with your toy, but eventually, you might start to feel tired or bored. You might not feel as excited about your toy as you did before, and you might start to feel like you're missing out on other fun things you could be doing, like going outside or reading a book.
That's what "all work and no play makes Jack a dull boy" means. If you do nothing but work and don't take any breaks for fun or relaxation, you'll probably start to feel bored and tired, and you might not be as good at your work as you would be if you took some time to recharge your batteries. So remember, it's important to have a balance between work (or playing with your toy) and having some fun (like seeing your friends or going outside) so you don't get bored or tired!