I think what "far from exact" and "close to exact" means for functors kind of depends on context --- for example something similar to what @Daminark - but for modules, is that if you have two $A$-modules $M,N$, then $Ext^1_A(M,N)$ is in bijection with short exact sequences of the form
$$0\rightarrow N \rightarrow P \rightarrow M \rightarrow 0$$
up to isomorphism.
So here how far away $Hom_A(-,N)$ is away from being right exact is the same thing as saying how many ways can you have an exact sequence of the above form (if Ext is trivial, then $P$ is isomorphic to $M\oplus N$.