Here it is, a cute little embroidered pocket to store a hot pad / pot holder or two.  Or as the printed text on the inside of the handle suggest, hot dish holder.  The stamped printed cotton goods, made by JBK copyright 1927, was sewn and embroidered by the homemaker.   

Pocket measures 14-1/2" long from the top to the bottom point.  Width from point to point is 10".   Nice condition.