Low density willow is literally just willow that is lower density.
There's a good response by James Laver to a question on PakPassion about how they grade their willow, here is a few Q&A's related to your question.
_________________________________________________________________________________________________
PakPassion.net: Every brand has different way of grading clefts, what is Laver & Wood's method? How do you grade a cleft into a Reserve for example rather than Private Bin?
James Laver: We grade on three main factors – looks, performance and durability. If a cleft is superb in all three areas then it will be a Grade 1 (Signature, Reserve or Private Bin), if it is not superb in one of the areas then it will be a Grade 2 (Special Reserve or Heritage) and if it is not superb in more than one area then it will be a Grade 3 (Legend).
The difference between the Reserve and the Private Bin essentially comes down to the density of the cleft. If the cleft is classed as being Grade 1 in all three aspects but is not low density then it will be a Private Bin, if it is low-density then it will be a Reserve.
_________________________________________________________________________________________________
PakPassion.net: What are the causes of low-density clefts?
James Laver: Low density is simply a natural property of certain willow trees. It comes down to the conditions in which the specific willow tree grew (weather, sunlight etc) as well as how quickly it developed.
Once again, the actual willow merchants would be much more qualified to discuss this than myself.
_________________________________________________________________________________________________
PakPassion.net: What is your opinion of high density / low density cleft bats? Which is preferred and why?
James Laver: It is simple enough to say that as long as low-density clefts are structurally sound then they are preferential. A low-density cleft is lighter than a high-density one and will therefore produce a larger bat at a given weight.