Usually, it does not grow “skin” in the same way that it would grow ordinary skin. Instead, it grows *scar tissue.*
With modern medicine, we have learned how to *graft* skin over the amputated area, so that it will not develop scar tissue (or only a very small amount), and instead keep the beneficial characteristics that actual skin has and scar tissue doesn’t have. Scar tissue is stronger in some specific ways, but mostly weaker than proper skin, and won’t have hair follicles or other properties true skin has.
The stump is usually made surgically while cleaning and repairing the lost limb.
Excess skin (or doner tissue from another appendage or source if needed) is sewn together to close the wound
Since human healing/regeneration is very limited once the wound heals that’s basically the end of it. Scar tissue will likely form
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