its brick dust. its the brick slowly disintergrating over time due to the effects of weather/time/pollution/salts/frost etc. unless its really bad you dont need to do anything, but you could face up the bricks affected with coloured mortar.
spalling brick faces are very common and something you just have to live with.
don't repoint with a modern strong portland cement mortar, it will make the problem worse.
If you have the balls for it remove baddly spalled bricks with their stretcher face on the outside face of the wall, turn them round and cemment back into place with a lime mortar or weak portland cement mortar 1:1:3 (portland cement: hydrated lime: sand). By the way obviously do only every other brick in the wall or the wall will fall down. Then leave for a few days before doing the rest.
The other option is to have a lime and sharp sand render applied to the base of the wall below DPC. this will degrade instead of the brick faces.
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