It's an indicator of extended attributes. On my machine, it's only com.apple.FinderInfo, with the value:
$ xattr -p com.apple.FinderInfo private
00 00 00 00 00 00 00 00 40 00 00 00 00 00 00 00
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00
The first eight bytes are type and creator codes, the next four are Finder flags (page 13).
On my machine, only kIsInvisible is set, so it's possible that when you navigate to your disk root folder, private is visible.
Enter the following in Terminal to restore its hidden state and the associated extended attribute:
sudo chflags hidden /private