Green’s Dictionary of Slang

freestyle adj.

(orig. US black/teen) in rap music, composing lyrics spontaneously in front of an audience.

R. Vincent Funk 38: [In] torrid after-hours jam sessions, and Hip Hop freestyle (rapping) challenges, black folks have perpetuated their funky behavior, letting it all hang out.
F. Alexander Got Your Back 45: Kenner got on the stand and gave a speech, and Snoop and Pac got on the stage and started freestyle rapping.
E. Wald Dozens 196: Like the dozens, freestyle battling can be an acrobatic verbal exchange between friends or an expression of genuine rivalries, disagreements, or hostility.