How to create text file and insert data to that file on Android

Check the android documentation. It's in fact not much different than standard java io file handling so you could also check that documentation.

An example from the android documentation:

String FILENAME = "hello_file";
String string = "hello world!";

FileOutputStream fos = openFileOutput(FILENAME, Context.MODE_PRIVATE);
fos.write(string.getBytes());
fos.close();

Using this code you can write to a text file in the SDCard. Along with it, you need to set a permission in the Android Manifest.

<uses-permission android:name="android.permission.WRITE_EXTERNAL_STORAGE" />

This is the code :

public void generateNoteOnSD(Context context, String sFileName, String sBody) {
    try {
        File root = new File(Environment.getExternalStorageDirectory(), "Notes");
        if (!root.exists()) {
            root.mkdirs();
        }
        File gpxfile = new File(root, sFileName);
        FileWriter writer = new FileWriter(gpxfile);
        writer.append(sBody);
        writer.flush();
        writer.close();
        Toast.makeText(context, "Saved", Toast.LENGTH_SHORT).show();
    } catch (IOException e) {
        e.printStackTrace();
    }
}

Before writing files you must also check whether your SDCard is mounted & the external storage state is writable.

Environment.getExternalStorageState()