If you want the specifics:
Reflect halves the damage taken from physical moves directed at the ally team.
Will-o-Wisp inflicts the burn status on the target, which decreases it's physical moves' power by half while steadily decreasing HP.
If a burned opponent hits the ally team while Reflect is active on the ally's team, the damage will be calculated as 1/2 * 1/2, which is equal to 1/4 the damage the move would normally do.
Sources: Bulbapedia (1, 2)