How is Vanilla made into Pure Vanilla Extract?

Whole vanilla beans are chopped and then soaked in unflavored vodka.

To make vanilla extract, deposit two split vanilla beans in a glass bottle or jar. Add a cup of unflavored vodka. Cap and store in a dark, cool place. Shake the bottle gently every couple weeks. After about two months, you'll have your very own homemade vanilla extract.

They take vanilla pods (it's a plant) and soak them (or sometimes just the beans scraped from the pods) in alcohol.

That's basically it.