Googling "lo8 avr" gives this as first hit.
lo8 This modifier allows you to use bits 0 through 7 of an address
expression as 8 bit relocatable expression.
[edit]
Like here:
push YH ;2 [2]
lds YL, usbInputBufOffset;2 [4]
clr YH ;1 [5]
subi YL, lo8(-(usbRxBuf));1 [6]
sbci YH, hi8(-(usbRxBuf));1 [7]
Looks as if it finds the buffer location address here.
I don't know why the subtraction of negative base address from the offset instead of adding, but...
Oh, and I guess "relocatable" means "load time" here. That is, the value doesn't have to be known at assembly time, but it has to be known and constant at run time. Maybe the "lo8" and "hi8" create a relocation info type loader symbol (or expression) - much like segment address.