In knock knees, the lower legs are at an outward angle, such that when the knees are touching, the ankles are separated.
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Most children develop a slight knock-kneed stance by the time they are 2 or 3 years old, often with significant separation at the ankles when the knees are touching. This is part of normal development and often persists through age 5 or 6, at which time the legs begin to straighten fully. By puberty, most children can stand with the knees and ankles touching (without forcing the position).
Knock knees can also develop as a result of disease processes. Most often the cause has already been diagnosed and the knock knees are recognized as a symptom of the condition.
Sass P, Hassan G. Lower extremity abnormalities in children. Am Fam Physician. 2003 Aug 1;68(3):461-8. Review.