There are several uses of the word.
To "stiff" a bank is to make the banked ball come off more perpendicular to the cushion, and usually this is done by transferring spin from the cue ball to the object ball so that the spin on the object ball will be "reverse" when it hits the cushion. Speed may also help with this depending on the distance of the object ball from the cushion.
In 3-cushion, a "stiff" is a shot that cannot be made in the way planned. For example, you might try for a shot that requires a certain rail sequence, but that sequence is impossible to achieve due to the spin that the cushions are putting on the cue ball along the way.