Little Gray Hoodie Coat is about how the McDaniel family manages to make it through hard times to a better life. The McDaniels are an African American family headed by a single mother named Lillian. She has two young daughters, Jasmine and Lillie. They are initially homeless and live in a van. Through the help of a kind acquaintance, Lillian becomes a resident at the Augustus Tolton Homeless Shelter. The Shelter is located on the south side of Chicago, Illinois, and is owned by the Saint Augustus Catholic Church.

The McDaniels encounter other characters in similar situations, and their interactions portray the importance of family and friends. The stories take place in the early 90s and in current times. Through the eyes of children, the reader learns that not all children are "well off and secure." Though dealing with life's sometimes-harsh realities, the stories are sprinkled with humor and triumphs. Love, faith, hope, charity, and perseverance are interwoven themes.