Another way of saying this is; Put a sock in it!

it litteraly means" shut up" or " be quit"

If someone is speaking and you tell them to 'put a lid on it', you are telling them to shut up immediately, because you are not interested in what they are saying and you don't want to hear any more. If you use this phrase, the person speaking might feel that you have interrupted them abruptly, so be careful when you use it! Also, to 'put a lid on it' is to finish with or stop something by dealing with it promptly.