It's the Regular Production Option, RPO, code from the manufacturer. It's always a 3 character code. The first character is the group, i.e. 1is Preferred Equipment Groups, L is engines, F is suspensions, and Z is miscellaneous option packages. Everything on the vehicle has an RPO code it tells the assembly line what is going on a certain car.
Some well known RPOs are:
RPO LLY: Duramax Diesel engine to be mated to Allison 1000 transmission
RPO LB7: Duramax Diesel engine to be mated to 6-speed manual transmission
RPO LD9: 2.4L Twin Cam 4-cylinder
RPO L61: 2.2L Ecotec engine
RPO LT1: 2nd Generation SBC found in Camaros and C4 Corvettes
RPO LT4: 2nd Generation SBC found in C4 Corvette Grand Sport
RPO LS1: 3rd Generation SBC found in Camaros, C5 Corvettes, and GTOs
RPO LS6: 3rd Generation SBC found in C5 Z06 Corvette, and Catera CTS-V
RPO LS2: 4th Generation SBC found in C6 Corvette, GTO, and SSR
RPO LS7: 4th Generation SBC found in C6 Z06 Corvette
RPO FE0: J-Body Suspension package
RPO FE1: J-Body Suspension package
RPO F51: Corvette Competition suspension package
RPO WS6: Upgraded Firebird Performance package
RPO Z06: Upgraded Corvette Performance package
RPO Z24: Upgraded Cavalier Performance package
RPO Z71: Silverado, Canyon, Colorado, Tahoe, and Suburban Off-Road Package
RPO Z26: Upgraded Beretta Performance package
RPO Z28: Upgraded Camaro Performance package
RPO Z34: Upgraded Monte Carlo Performance package
RPO ZR2: S-10, Sonoma, Blazer Off-Road Package
RPO 1SA: Preferred Equipment Group for LS trim trucks
RPO 1SB: Upgraded Preferred Equipment Group for LS trim trucks
I don't know every RPO, or what every group is nor do I claim to, but I can tell you when something is an RPO and when it isn't.
In the case of the Z06, Z28, Z71, ZR2, Z24, Z34, and Z26 GM decided to market the RPO as the trim level as well, which is why most people don't know what they really stand for, and the other RPOs, except for certain engines aren't marketed so most people don't even know they exist.

Yella02-I promise I will return to you in one piece and this will stay up until I am safely home