An environmental portrait is a portrait taken of a person or people in a situation that they live in and a place that says something about who they are e.g. workplace, home. They are different from traditional portraits shot in a studio as they give an insight into the daily life of the person being photographed, making for a more personal image.
By photographing a person in their natural surroundings, it is thought that you will be able to better illuminate their character, and therefore portray the essence of their personality, rather than merely a likeness of their physical features
The subject will be more at ease, and so be more conducive to expressing themselves, as opposed to in a studio, which can be a rather intimidating and artificial experience
Here is a website which helps you achieve better environmental portraits:
https://petapixel.com/2016/04/07/8-tips-making-better-environmental-portraits-natural-light/