1. In writing, use or making of interesting ideas. One would be in the novel "Job: A comedy of justice" where the devil isn't evil and hell isn't horrible but god just wanted people to think that, where most people just stick to "heaven good hell bad" or "it's all a lie and god is actually evil".
2. Words or action that replace a normal set. Slang started with this.
3. In flirting it means to make something up to get the other person. not necessarily lie but possibly exaggerate truth.
guy 2: "Use some creative license. Try to be original. Make it so that people will use a your idea to replace existing ones."
guy 1: "OK, How am I to do that?"
2. "Of course Josh used creative license and now instead of a hand shake he looks them in the eye and steals their wallet."
3. guy: "I work out every weekend."
Chick: "I know you do community service."
guy: "oh ummmm"
Chick: "You need to work on your creative license. But I will still go on a date with you"