Homer wrote no such thing. Leaving aside whether Homer, if such a person existed, could write at all, the quotation is not Homeric. It was invented by Emil Naumann in the late 19th century. Naumann's full quotation is:

A profound symbolism, characteristic of the Greek mind, is embodied in this fanciful and humorous story; for, as the same poet elsewhere suggests, noble and manly music invigorates the spirit, strengthens the wavering man, and incites him to great and worthy deeds; whereas false and sensuous music excites and confuses, robs man of his self-control, till his passions overcome him as the waves overwhelmed the bewitched sailor who listened to the voice of the charmer.

Note that Naumann does not quote Homer--earlier in the same passage he does, using proper quotation formatting.

We don't really know.

If we look a little bit less far away into the past, we find Plato also discussing the influence of music. He discusses using one musical scale or another, and how "bad" music will corrupt. Do we know what that less ancient music was like? No, not really. We have texts on what music should be, a few bits on how music was written down, a few surviving examples (of a notation that is not particularly specific on many performance details), some surviving instruments (or fragments of them), depictions of musicians in actions... That's about it.

Attempting to recreate music from 0 CE +/- 200 years has not been easy at all, getting into Homeric times is going to be even more problematic.