The oil control valve filter is a cylindrical metal screen filter located below the oil control valve (VVT-i) that helps prevents large debris/insoluables from potentially clogging the valve. Most of that should be captured by the main oil filter, but in case something gets dislodged before it circulates down to the filter assembly, this OCV filter is supposed to catch it.
Some engines are "dirtier" than others, and can quickly clog the filter, starving OCV of fresh oil and oil pressure. This can cause a malfunction in the VVT-i system, as it is controlled by oil pressure, the OCV controlled by the ECM to vary oil pressure accordingly.
Here is a link to pic of a clogged one:
http://www.clublexus.com/forums/performance/401898-p1349-vvt-system-malfunction-bank-1b-blocked-oil-control-valve-filter.html
The one on the Corolla looks a little different, but the end result is the same. This is not specific to Toyota, as other manufacturers have secondary, inline filters as well - Mazda has one that looks identical to the Toyota setup.