I don't know what the author means but here is my _guess_ .
Consider the sky-scraper sheaf $Sky_p(E_p/\xi)$ with support $p$ and fiber $E_p/\xi$.
Define a subsheaf $F\subset E$ by the exactness of $0\to F\to E\to Sky_p(E_p/\xi)\to 0$.
My guess is that $E(\xi)=F\otimes_\mathcal O \mathcal O(p)$.
This means that if $z$ is a local coordinate for $C$ at $p$, sections of $E(\xi)$ near $p$ are of the form $\frac {1}{z}s$ where $s$ is a local section of $E$ satisfying $s(p)\in \xi$.