What programming language or procedure is involved in creating a portableapp?
Do they download the source code and rewrite it?
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Almost any programming language you like is good. People here use mostly NSIS, but I know of people using AutoIt and C++ too.
Rewriting source code is not a good option as handling updates would be complicated, therefore the usual way is creating a launcher that's often simply a silent installer + uninstaller. In some cases it just launches the app with a parameter that tells it where are it's settings, if app allows such.
"Those people who think they know everything are a great annoyance to those of us who do." Asimov
I think that this forum is the wrong one for this questiong.
Try the app devolopment one here