Jeremy Grancher discusses creating custom components for React Native. He demonstrates how to build both a custom utility component and a custom UI component that renders native views. For a utility component, you create an Objective-C or Java class that extends RCTBridgeModule and export methods. For a UI component, you create a view class, a manager class that extends RCTViewManager, and export view properties and methods. Custom components allow you to extend React Native with platform-specific functionality and provide wrappers for existing native modules.