There are two signs, depending on which specific meaning you are referring to.
Meaning: the ability to read and write.
Most people think of "literacy" in its simplified concept based on the ability to read and write. The ASL sign "literacy" also reflects this concept.
Meaning: "the ability to read, write, speak and listen in a way that lets us communicate effectively and make sense of the world." -- literacytrust.org.uk
The concept "literacy" refers to much more than just the ability to read and write. This sign was shown by Marlon Kuntze (PhD) who is Deaf in his presentations on literacy in Deaf children. His research involves in the area of language, cognitive and literacy development, especially in bilingual Deaf children who are fluent in ASL and acquire written English as a second language.
Review 101 words. Refresher.