A statistical model is a way of looking at how different parts of a system or different things in the world interact with each other. Statistical model specification is a way of creating a model that accurately captures the interrelationships between different elements of a system or different things in the world. Specifying a statistical model includes picking what kinds of variables (things that can change or be measured) are included in the model and how they are related to each other. It's kind of like fitting a puzzle together - you have to figure out which pieces belong together and how they fit together to make a complete picture.