This is an old-fashioned particle which was common in the language of the 19th century.
Yes, it is derived from an abbriviated form of the word "сударь" which roughly means "sir". It was used to express servility.
It could be attached nearly to any word, but mostly to verbs: слушаю-с, пойду-с, как изволите-с. Also: да-с, нет-с etc.