I do not know. How do you know there is a password?
What to do depends on whether this is an emulator on a specific computer in the class or whether this is part of a network distribution or whether the emulator is part of an Android sdk install or the problem is the emulator that installs with App Inventor using aiStarter.
On a Win7 PC, the folder with the emulator associated with App Inventor is most likely here

To get a working emulator you might uninstall aiStarter and reinstall. That should give you a clean emulator. You might look at the emulator 'tools' as shown in the image. Find the reset-emulator.bat file. Running that bat file might 'unlock' the emulator. If it does unlock, smile, if it does not, just reinstall. Running the bat file might mean you will also have to do a Connect > Hard Reset from the AI browser. Unfortunately, I do not know exactly what will happen...travel here at your own peril; however if something breaks, just reinstall. :)
Did that work?
Regards,
Steve