An  incremental  approach  to  integration  testing  where  the  lowest  level  components  are  tested  first,  and  then  used  to  facilitate  the  testing  of  higher  level  components.  This  process  is  repeated  until  the  component  at  the  top  of  the  hierarchy  is  tested. See also integration testing.
In simple English:
Test one small piece at a time starting with the lowest level. 
Field notes:
Most often this is the approach taken when both the development and testing are done by the same company. 
This approach in principle is the basis of several other famous approach like test driven development, agile and that family of processes. 
In some cases this approach might not be very appropriate. 
For example:
 when the property being tested it's an implementation of a established stable product like people soft, this approach makes no sense as all the components are already tested and proven. 
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