Originally, it stood for Quality Factor, but it has been stripped down to Q. In Theil-Small speaker parameters, there's a Qes (electrical Q), a Qms (Mechanical Q) and a Qts (total Q). It has to do with how something resonates, either electrically, mechanically or as a whole. High Q means that it rings out like when you flick a wine glass, and only in a narrow frequency band. Empty, it resonates until the energy is gone or we can't hear it but it's a wider band of frequencies. With liquid, the ringing is dampened, somewhat and the duration decreases, as well as the resonant frequency. Full, it's dampened enough that it really doesn't ring much. Low Qts means that it's highly damped and if the Qts is high, it's like thumping a drum head with no damper. It may hit really hard but the note just keeps on going. This is really bad for music, especially when the bass range has a lot going on. Classical music likes more damping, so you may see some speakers that are designed for that type of music with a Qts of ~.6 and for systems that are designed for Rap and techno, you may see something in the Qts=1.2 range. Along with this high Q spec comes a resonant peak. High Q speakers have a peak before they roll off toward the lowest extremes and lower Q have a smoother response, with little, or no peak. Qts=.707 is called "critically damped" and works well for a lot of different kinds of music.
A large speaker in a small room will cause the Q to raise and a small speaker in a large room will lower it but in that case, it's not the air in the speaker enclosure that's resonating, it's the air in the room.
From Wiki:
http://en.wikipedia.org/wiki/Quality_factor