Asphalt patching is where there is a damaged section of asphalt or bitumen seal, which has broken through to the road material underneath which has caused a pothole.
A few things can cause this, but the new main reasons are due to base material failure or old age, which has caused it to become brittle.
The process to repair is to remove the damaged section of asphalt, repair the base material if required and place an asphalt patch in its place.