My husband made 3500 last year teaching a class in leatherwork but does not own a business. Do we still have to file a state tax return in FL?

Florida does not impose an individual income tax; it does have business and corporate taxes.  Which does not seem to be your case.

The Florida return in TurboTax is for business and rental property owners located in Florida to report assets to their county property appraisers.

By entering the 1099-MISC from a company located in Florida, the program has assumed that you have a business located in Florida and might have assets located in Florida to report. Since that is clearly not the case, you can skip the Florida return in TurboTax entirely. Choose Skip State in the State Taxes section