I didn't know what it was either, so I googled it and found
this article. According to the article, "Hot sauce adds a kick to salsa, barbeque, falafel and hundreds of other foods. But some parents use it in a different recipe, one they think will yield better-behaved children: They put a drop of the fiery liquid on a child's tongue as punishment for lying, biting, hitting or other offenses."
ETA: Isn't Lisa Welchel the actress who played Blair Warner on The Facts of Life?