I came across the term 'smallest equivalence relation' in the course of a proof I was working on. I have never thought about ordering relations. I googled the term and checked stackexchange and couldn't find a clear definition.
Is someone able to provide me a definition of what a smallest equivalence relation is and an example of one equivalence relation being smaller than another?
An equivalence relation is a set of ordered pairs, and one set can be a subset of another.
For any set $S$ the smallest equivalence relation is the one that contains all the pairs $(s,s)$ for $s \in S$. It has to have those to be reflexive, and any other equivalence relation must have those. The largest equivalence relation is the set of all pairs $(s,t)$.
For some in between examples, consider the set of integers. The equivalence relation "has the same parity as" is in between the smallest and the largest relations.
Think about how the relations "is congruent to mod $n$" are related by inclusion.
As @JiK comments, the equivalence relations get their "less than" order from the natural way that sets have such an order. That order is "partial" since there are pairs of equivalence relations such that neither is a subset of the other.
If you know the theorem that says that equivalence relations naturally correspond to partitions, you can translate the order structure. The partition $P$ is finer than the partition $Q$ if every block of $P$ is completely contained in some block of $Q$. Finer partitions correspond to smaller equivalence relations. In the finest partition every element of $S$ is in a block by itself - the smallest equivalence relation. In the coarsest partition all of $S$ is one block - the largest equivalence relation.