The i-III-VI-iio progression is a specific sequence of chords commonly found in minor keys, where 'i' represents the tonic chord, 'III' is the mediant chord, 'VI' is the submediant chord, and 'iio' is the diminished supertonic chord. This progression often creates a strong sense of movement and tension, leading effectively back to the tonic. It plays a significant role in establishing harmonic relationships and developing musical phrases within minor tonalities.