"Disaggregation" refers to modelling in which some component is divided into a number of parts. For example, a lumped (non-disaggregated) model of soil water dynamics might use a single compartment to represent the amount of water in the soil. A disaggregated version of the same model might divide the soil into a number of layers, and represent the amount of water in each layer. Or: a population may be divided into age-classes; an area may be divided into subareas; a single "vegetation" component may be divided into the separate species. It is a very common and important modelling technique, required to capture dynamics that would be lost in a lumped model of the same system.
In conventional programming and in the other visual modelling packages, disaggregation is handled by declaring certain variables to be arrays rather than scalars (single-valued variables). This is a tedious approach, reflecting the design approach of the earlier programming languages (Fortran, BASIC), which is difficult to read visually.
Simile encourages a quite different approach. You use a submodel to represent one of the disaggregated elements: a single soil layer, a single population class, a single subarea, or a single vegetation species. This submodel is then made into a multiple-instance submodel, so that it now represents all the soil layers, all the population classes, etc. Finally, you add the links that relate one element to the next: e.g. the flow of water from one layer to the next.