this literally means 'Dog Walker I'd Like to Fuck'
Tederick: "Hey Ted! Check out that DWILF! 11 o'clock"
Tedders: "Duude, that is one Dog Walker I would Like to Fuck..."
A person of small stature (e.g. a dwarf) that is suitable for a sexual encounter; a "Dwarf I'd like to Fuck"
"That dwilf behind the counter at the grocery store short-changed me. I oughta step on her."