As reported by Wikipedia - Sinc function, $y(x)=\lambda \operatorname{sinc}(\lambda x)$ is a solution of the linear ordinary differential equation $$x \frac{d^2 y}{d x^2} + 2 \frac{d y}{d x} + \lambda^2 x y = 0.\,\!$$
Has equation above physical meaning? That is, is it used to model some physical phenomena?
It has a physical meaning. It is the radial wave equations for the case $\ell = 0$.
The radial wave equation is written as
$$ \left[ \frac{d^2}{dr^2} + \frac{2}{r} \frac{d}{dr} + k^2 - \frac{\ell(\ell+1)}{r^2} \right] \psi = 0, $$
which can also be written as
$$ \frac{d^2\psi}{dr^2} + \frac{2}{r} \frac{d\psi}{dr} + k^2 - \frac{\ell(\ell+1)}{r^2} \psi = 0. $$
The case $\ell = 0$ can be written as
$$ r \frac{d^2\psi}{dr^2} + 2 \frac{d\psi}{dr} + k^2 r \psi = 0, $$
which is the form
$$ x \frac{d^2y}{dx^2} + 2 \frac{dy}{dx} + \lambda^2 x y = 0. $$