This is a quite from the movie "The Matrix".
In the scene in the film, a young boy, dressed like a swami, is seen to bend a spoon effortlessly and make it twist and reform.
When asked how this is done, part of his answer contains the phrase 'there is no spoon'.
To sum up his explanation, physical reality is merely an illusion, and when one realises this so deeply that it becomes obvious and second nature, then one can reform reality however you want.
In fact the only reality is our perception of it, and we can choose to see it any way we wish and project that back out to others. Essentially we have free reign to shape and change reality in any way that we so desire. The only thing stopping us is our previous experience of reality holds us back from believing that it can be real, even if we try. This is coupled with another quote in the movie “free your mind”.
In everyday use it often means that a problem is not as bad as we think.