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It's the dumbest metric IMO for Google's PSI.... and it's one I personally ignore... but I'm also pig-headed about things like this...
Google wants all your CSS and JS that's needed for above-the-fold content to be loaded inline instead of from a file... which is over-the-top in my opinion... Say you have a fancy slideshow at the very top of your page, in your above-the-fold content area... say that slideshow requires a good deal of CSS and JS to work... Google's wants all of that code to just be dumped in your HTML body... which sure, on initial page load MIGHT be faster... but it could be slower depending how much code it really is... when that code lives in it's own file it can be combined and compressed (gzip) and will actually load much faster than being inline in many cases... and on subsequent page loads it's always going to be slower AND if you use that same slider on other pages of your site it will definitely be slower.
Anyways... you can try and strip all the necessary code out yourself and place it inline... that's not something we can help with here as it's well beyond the scope of support, but at least that should give you a better understanding of the metric... You might check out JCH Optimize as well... their Pro version has a feature which attempts to do this for you... I've never tried it myself
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