A small flute is called a piccolo. A piccolo is one octave higher than a regular concert flute and can be used anywhere from a full orchestra to a military band.
Just like a flute, the piccolo is a member of the woodwind family. It has the same fingerings as a regular flute, and all piccolos are manufactured in the key of C. Orchestras often feature piccolos in combination with flutes or violins.
For examples of piccolos in action, they can be clearly heard in songs such as John Philip Sousa's "The Stars and Stripes Forever" and Beethoven's "Egmont Overture."