It is said in the Silmarillion that the Elves believedthat orcs were originally made from captured elves.
They believed ; they did not know.
The Valar didn't tell the Elves about the origin of the Orcs because they didn't know themselves or they wanted everyone to believe their propaganda that Melkor Morgoth was was incapable of creating anything for himself.
If Melkor did create the Orcs, not just corrupt them, then they would lack the spark of The Flame Imperishable that would give them real life. They would have no immortal soul. They would be wholly evil and irredeemable.
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