We introduce a diffuse-interface Landau-de Gennes free energy for free-boundary nematic liquid crystals (NLC) in three dimensions submerged in isotropic liquid, where a phase field is introduced to model the deformable interface. The energy we propose consists of the original Landau-de Gennes free energy, three penalty terms and a volume constraint. We prove the existence and regularity of minimizers to the diffuse-interface energy functional. We also prove a uniform maximum principle of the minimizer under appropriate assumptions, together with a uniqueness result for small domains. Then, we establish a sharp-interface limit where minimizers of the diffuse-interface energy converge to a minimizer of a sharp-interface energy under the framework of Γ-convergence. Finally, we conduct numerical experiments with the diffuse-interface model, the findings of which are compared with existing works.