Does it only refer to the top quilting or the patchwork joining as well? If both then I would say it is using and making a quilt from pre used fabric and followed by hand quilted. Both these would have possible been slightly larger stitches being hand stitched.
Will keep looking at this to see what others say.

Quiters used the thread or string used to stitch feed or flouer sacks

http://thecountryfarmhome.blogspot.c...irt-quilt.html
This shows a bit more on the different types of stitches used.

Utility quilts were made of heavier fabric than we use, and not so fancy. As an example, they were carried in a truck or back of a car in case of an emergency, or had to lay on the ground to fix something. I still see them used, however, they are an orange color or tan. Utility trucks carry them.

in different parts of the country different names are often used for blocks, quilt designs, techniques and types of quilts---here in my 'neck of the woods' the term "Utility Quilt" is the term placed on a quilt that is made for Every day use- used, laundered, *abused* often- Kids every day bed quilts, quilts used outside for picnics, car *travel* quilts- any quilt that is used/abused/loved a lot.... so -- over the years I have made lots of Utility Quilts. I make sure they are stitched well- going to hold up to what ever is going to happen to it. I do not put a ton of applique into a utility quilt- or other time consuming/extreme techniques (although generally they are still pretty neat-loved quilts) I do still use good materials- since I want them to hold up-last through the abuse they will have to go through.

Denim with flannel makes a great utility quilt. I make a lot of rag quilts to be used and abused. Four stitches per inch is a good utility stitch length using size 12 wt thread.

Besides the vast amount of information available on the web, big stitch quilting has been talked about here many times.

Here are a few past discussions.
http://www.quiltingboard.com/main-f1...g-t189856.html
http://www.quiltingboard.com/main-f1...e-t218145.html
http://www.quiltingboard.com/main-f1...e-t203171.html
http://www.quiltingboard.com/main-f1...h-t125351.html

I have the book ..."Utility Quilting" and it is still available on Amazon.com ranging in price from $25.00 new to $18 and change used. The "utility" stitching is the quilting part. These are the threads suggested for use:
Valdani pearl cotton #12, crochet cotton #20, DMC linen embroidery floss, DMC cotton tapisserie #4. It's actually a really cool book of 127 pages complete with some quilting designs. This is for hand quilting...not machine. The finished work resembles Sashiko. They are uniform stitches but longer than a quilting stitch with more space between stitches and, in some instances, look really good in contrasting colors. Hope this helps.

Exactly what I was going to say.

I have always heard of utility quilting meaning you use it. Utility means to use. you cover with it, cozy up in it. Others are usually wall hangings. I heard that term from many of the videos.