Short for lollipop. Also known to be said from some of those fucking dumbasses that dont laugh but instead they spell out the letters "L. O. L." Out loud because they think its cool.(Mainly emo kids)
Dan - "Hey man, wanna go down to K-Mart and suck on some lols? I'm buyin!"
Andrew- "Naw, man. I think im getting bad cavaties from those lols!
Dan - "L. O. L."