Final answer:
The constant of proportionality in the equation 'y = 0.12x' is 0.12, which means that each Lego piece costs 12 cents. This constant reflects the cost per piece for the Lego set.
Step-by-step explanation:
The constant of proportionality in the equation y = 0.12x is 0.12. The constant of proportionality represents the cost per Lego piece. It means that each Lego piece costs 12 cents since 1000 pieces cost $120. Therefore, if x represents the number of Lego pieces, then the total cost y can be found by multiplying the number of pieces by the cost per piece, which is given by the constant of proportionality.