You can find the answer to this in Chapter 4. The name of their new game is "Boo Radley."
The way that this game works is that the children pretend to act out things that Boo does. They get their ideas from all the crazy stories that are told about Boo.
By the end of the chapter, there is some conflict between Jem and Scout as to whether they should keep playing. She wants to stop because Atticus caught them playing and clearly did not like it.
She is also nervous about it because she is sure she heard someone laughing in the Radleys' home when she rolled into their yard in the tire.
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The children have been told so many scary tales about Boo Radley that they make up a game about him. He is big and scary and they put on plays pretending that he is coming after them and how they handle it.
They continue to play the game until the neighbor sees them. Jem is no longer comfortable playing the game because he thinks that they will get told on. He knows if Atticus finds out that he will not be happy about their game.