It does not have a well-defined meaning. In these types of discussions, “language X is more powerful than language Y” usually means little more than “I like language X more than language Y.” On the other end of the spectrum, you’ll also usually have someone chime in about how any Turing-complete language can accomplish the same tasks as any other Turing-complete language, so that neither is strictly more powerful than the other.
I think a good meaning for it is expressivity. When a language is highly expressive, it means less code is required to express concepts. To me, this doesn’t just mean that you have to write less code to accomplish the same tasks, but also that the code is easily readable by humans. Of course, generally (to a point), having fewer lines of code to read makes the task of reading and understanding easier for humans.
Having a “powerful” standard library comes into play here along the same lines. If a language comes equipped with thorough, complete libraries, then idiomatic code in that language will be able to benefit from the existing library code and not have to repeat or reinvent common functionality in application code. The end result is, again, having to write and read less code to accomplish the same tasks.
I keep saying “generally” and “to a point”, because once a language gets too terse, it gets more difficult for humans to decipher. I suppose at this extreme, a language may still be considered “more powerful” (or even “too powerful”). So I guess I’m saying my personal interpretation of “powerful” includes some aspects of “useful” and “readable” in it as well.