Nope. It did not start in clubs - even though that's where it is now.
House music *did* start in the clubs, although the artists who kicked off the movement (Jamie Principle, Frankie Knuckles, Todd Terry, Marshall Jefferson, Larry Heard) obviously made music in the studios initially. However, without the clubs in Chicago, New York and Detroit there wouldn't have been 'House music'.
The
"House" in House Music refers to the house parties.
The name 'House' comes from the Warehouse 'disco' (as they were called then) in Chicago, I think...Frankie Knuckles was the DJ (owner?) at the time. For a brief intro have a look at the essay on All Music Guide at http://www.allmusic.com/cg/amg.dll?p=amg&uid=MISS7031022033 5&sql=J310 Andy Jackson : a n d y * j a c k s o n : : l i b r a r i a n : : s c h o o l * o f * n u r s i n g * a n d * m i d w i f e r y : : u n i v e r s i t y * o f * d u n d e e : : d u n d e e * d d 1 * 9 s y : : t e l *0 1 3 8 2 * 6 3 2 0 1 2: