I keep seeing the term grafted seed when searching for information about growing lemon trees. So what does grafted mean and what is different about a grafted seed and a seed from a lemon?
it means that it is a hybrid, by taking the top portion of one variety(Scion), and the bottom portion of another variety(root stock), and conjoining them to form together to produce a hybrid, both having the characteristics of both parents
It's not the seed that's grafted, but the tree (see Takana's explanation). So if you get seed from a tree that's been grafted, and then plant it, what comes up may look nothing like what you expect (considering the stock may have been one type of maple and the scion (top part) another.
Hybrids can not be created by grafting. Hybrids are created by sexual methods. Grafting is vegetative propagation.
No one said anything about hybrids from grafting, only that taking cuttings from the top of the graft will not necessarily resemble the top part of the plant.