Yeah, whenever you say something in Spanish with an "-ito(a)" at the end, it means small or tiny. In this case, it was obviously meant in a derogatory and condescending way.
Best comparison I could think of would be like calling an adult male named John, "little Johnny" or Tim, "little Timmy" etc., something like that. Maybe ok if it's your grandparents/older relative but probably not by some stranger.