It's a diminutive form of "poco", which also means "little" but is a bit more general. "Poquito" conveys a smaller amount or a shorter duration.
Here are some examples of how "poquito" is used:
* "Tengo poquito dinero." (I have a little money.)
* "Espérame un poquito." (Wait for me a bit.)
* "Dame poquito café." (Give me a little coffee.)
* "Está un poquito frío." (It's a little cold.)
Remember, "poquito" is an informal word, so it's best to use it in casual conversations.