It's a catch-all word for:
* Any small, unidentified object: "Where's that doohickey I use to open this thing?"
* A gadget or tool: "He used a doohickey to fix the leaky faucet."
* Something with a specific but forgotten purpose: "What's this doohickey for, anyway?"
Essentially, "doohickey" is a placeholder name when you need to describe something but lack the specific terminology.
It's often used jokingly, acknowledging the speaker's lack of knowledge or simply for comedic effect.