"Once you have falsified every other possible hypothesis, whatever hypothesis remains is the one we'll promote to a theory."
Holmes' is not saying you get to just make things up - he's trying to explain that instead of trying to prove something directly, inverting your perspective and falsifying as many incorrect interpretations ("the impossible") should always work - even if yo don't understand why.
That quote is an incredibly efficient summarization of the scientific method's core philosophy that (because you can't prove a positive), you falsify wrong hypothesis instead.