Agile iteration in software development practices implies a process of breaking down projects into smaller cycles that allow for rapid testing, feedback, and adaptation. This approach encourages flexibility and responsiveness to change, enabling teams to adapt to evolving requirements and incorporate user feedback quickly. Agile iterations promote collaboration among cross-functional teams and focus on delivering functional increments, enhancing product quality over time. Ultimately, this methodology supports a culture of continuous improvement and quick delivery of value to users.