While small holes in drywall can be repaired by filling the hole with spackling or joint compound, larger holes will require a patch made from scrap drywall.
To repair a large hole in drywall:
Watch this video to find out more.
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Small holes in drywall can usually be filled with a little spackle or joint compound. But for bigger repairs, you need to cut out the hole to create clean edges, then cut an identically sized patch from a new piece of drywall.
Secure two lengths of one by two behind the hole with drywall screws, insert the patch, and then secure it to the one by twos. Coat the seams with joint compound and apply drywall tape over them, being sure to smooth out bubbles or wrinkles. When the joint compound dries, apply additional coats, sanding in between, until the wall is smooth and the repair is invisible.