1) Technical definition: A chode is not the area between a man's nutsack and asshole. It is the soft pink walls of the inner-ass-crack, just outside the asshole itself.
2) A person who is a chode is someone who is a douchebag
but doesn't know it, and acts like he/she is "cool".
Most commonly refers to oblivious bosses who think their employees like them, and rich white kids who try to break dance. If someone makes you and your friends do the "durr, durr" retard impression when he/she leaves, that person is likely to be a chode.
Be advised: YOU are probably a chode if you frequently are the one walking away from a group alone thinking you're cool
Chode Manager: "Hey guys, thanks for working Sunday... so how was your weekend?"
Workers: "great. How was yours?"
Chode Manager: It was awesome! I got a good bike ride in, mowed the lawn, spent time with "the fam". Oh! I got new bike shoes....(rambles on)
Workers: (whisper) seriously???? What a CHODE!!!