This is a word used to describe a multitude of things. It is primarily used in reference to one's possession of potent strains of marijuana (loud, piff, dank, etc) as well as the female genitalia (pussy) or women in general. It can, however, also be used as an affirmation of something being good, okay, or acceptable.
Tay: You tryin' to roll up this rillo and hit the studio?
Nyc: Peach baggies baby.