The labbit is big and puffy similar to the Nintendo character Kirby. His shape remains the same, although his color, facial expression, existence of a mustache or items in his mouth vary. He comes in collectible figurines (and recently a foot stool) or printed on various articles of clothing.
Where did the word come from? According to an e-mail from Mr. Kozik himself:
about 10 years ago I did version of the Rabbit with a company in Japan. It was supposed to be 'Smokin' Rabbit, but they printed it 'Smorkin Labbit which sounds about 1 billion times cooler so thus it became REAL.
"That smorkin' labbit with the mustache and the rainbow looks gay."
"That's the point, dumbass."