I rather agree with everybody else - I suspect it may originally have been sold as a 1/16" chisel, it being too small for a 1/8".
Bear in mind that woodworkers didn't have Vernier calipers or micrometers until very recently - and trees still don't! Older tools are often somewhat 'nominal' to size, many of them having been hand ground rather than machine ground. Given that lack of manufacturing precision, it's actually quite surprising how close to their nominal size most are.
I suspect that forging, hardening and hand grinding the very small ones was a more difficult task than the larger ones, which would hold their heat better for forging, lose it slower when heat treating, and be easier to hold for grinding. Thus, really teeny ones are probably even more 'nominal' than the more usually used ones.