U-joint. Secondary, an output shaft. Cost to fix $300-500. Cost to ignore, lower unit $2,500. Time to fix U-Joint, about 2-3 hours, depending upon make and model. Unless you have the alignment tool, use a qualified mechanic.
Robert, karl nailed it right on, the U-jiont. I used to have an I/O Reinell, did the same thing. Eventually got bad enough where the steering would stick to one side. Cost me $360 to get fixed.
Don't assume its the U-joint. The gimbal bearing supports the drive shaft at the U-joint. Gimbal bearing failure is much more common than u-joint failure and cheaper & easier to fix. Either way Don't Ignore! What year/type I/O is it? Do you keep it at a dock or tow it? Gimbal bearing failure is almost always due to water entering the universal joint bellows. Sometimes a leak in the bellows can let water in and damage the bearing or the u-joint especially if it is in the water for a pro-longed period of time. Inadequate lubrication is the next cause - have you ever greased this bearing? Removal of the outdrive is probably the next step and is usually pretty simple. First step: invest in a shop manual - $60-$80. Repairs like this are usually easier than you might think. Remember: don't just treat the symptoms, cure the problem. If it's a water leak, fix it; if it's lack of lube, grease it.