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It generally means that the receiver was produced by cutting it on a milling machine, rather than being cast or investment molded.
 

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Milled:

typically milled on a CNC milling machine. Production done on 3 or 4 axis with built in tool changer to save time.

AR lowers are either milled from a forging or an investment casting.

A 100% milled receiver would be milled from a solid plate or billet,in which the mill cuts the entire shape out.

The original Rocky Mountain Arms "Patriot" 223 pistol was available with a milled billet upper and lower receiver. Very precise.

I think Brownells offers a milled Billet AR lower currently...in the $ 300 range due to the machine time in producing such a part.

3X the machinetime of milling out a forging which has the basic exterior formed.

There were milled AK's as opposed to folded, welded stampings.
 
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