This phrase is not literal; it means the speaker was very surprised. He won the lottery? You could have knocked me down with a feather!
Pro Tip 2/3
Emotional impact
Use when an event or news affects you deeply and unexpectedly. They named the charity after me? You could have knocked me down with a feather!
Pro Tip 3/3
Informal usage
The phrase is informal, best used with friends, family, or in casual conversations. You're retiring this young? You could have knocked me down with a feather!