I have yet to try making patches but unless you make that huge you’ll have trouble getting the words legible. There isn’t enough detail room for the smaller words to be anything but a blob using embroidery at a patch size
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That’s OK. The topic is what I like. That is someone else’s patch so I’d spin up something of my own and can handle less details. 
That looks like a molded plastic/silicone patch.
It is.
I might be able to design that on my software, and then port it to the Babylock if you want me to give it a try…
A high res scan of the image will help if it’s available.