I can't think of many things more luxurious than a pair of handspun, handknit socks! I have knit one pair of socks with handspun yarn and they are my coziest, most comfortable pair.
While socks can be made with any kind of yarn, certain fiber and wool types work best for durable socks. I recommend any fiber that has been blended with nylon or mohair (if you don't find mohair itchy!) as well as yarn made with Blue-Faced Leicester or one of the other longwool breeds.
Yarn made from the longwool breeds, which have a fiber or staple length of 8" or more, will make a long wearing, durable sock.
Here are some great patterns that show off handspun yarn's unique qualities: