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Not my lab but it varies from homelab to homelab. A lot of it is using it as a safe place to understand/experiment with new tech without breaking anything in a production/work environment.

Some people also use them to run Plex/Pihole/Pfsense and the like as well.

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I think this is a pretty good summation. I'm fairly active at the r/homelab subreddit and this is pretty on point. Usually there is some combination of upgraded home media/routing and then on top of that a learning and experimenting section based on your specific goals.

For others though it really is a hobby in the sense of building to build.

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