co-op preschool is a preschool where the parents take turns as a teacher aid. Let's say you need to come to preschool once every 2 weeks a spent your time there helping the teacher.
I personally am not a big fan of this. It introduces lots of inconsistency and if your child likes a structure this may not be for her. Every parent aid does things differently, they may discipline children very differently or may not bother to discipline at all. They may favor their own kids or their friends. The good thing is when you are there as an aid you really get to know how your kid is doing, who her friends are, and what's going on in the classroom.
When DS5 was in his last year of preschool, his class aid left and parents subbed there for about a month before a new aid was hired. I really hated the inconsistency of it, and DS5 was acting out a lot at home at during that period.