Okay kiddo, imagine you and your friend have to share a secret message, but you don't want anyone else to know what you're saying. So you come up with a secret code where you both agree that certain words actually mean something else.
That's kind of like what a covert channel is, except it's for computers. It's a way for bad guys to communicate with each other secretly without anyone else knowing. They might use a code or a hidden message inside something else that looks innocent.
It's like when you and your friend use a secret code to talk about a game you love without anyone else knowing what you're talking about. The bad guys are using a covert channel to do bad things without anyone else finding out. It's not okay, and that's why good guys try to find these covert channels and stop them.