See this article on the Apple support site: http://support.apple.com/kb/PH10939
It says: A home folder is created for each user of your computer when his or her account is set up. If you are the only user of your computer, there is only one home folder. The home folder isn’t actually named “Home”; its name is the same as the account name specified in your user account. Your home folder appears in the sidebar of Finder windows.