It from bit symbolizes the idea that every item of the physical world has at bottom — at a very deep bottom, in most instances — an immaterial source and explanation; that which we call reality arises in the last analysis from the posing of yes-no questions and the resistering of equipment-evoked responses; in short, that all things physical are information-theoretic in origin and that this is a participatory universe.
From the paper "Information, Physics, Quantum: The Search for Links" which appeared in Complexity, Entropy and the Physics of Information edited by Wojciech H. Zurek (1990), p. 5.