The word does not necessarily refer to a penis, but instead suggest that someone (or their actions) is a total, or rather a "chodal" douche bag.
"So-and-so is totally a chode, and he sucks dick." becomes "So-and-so chodally sucks dick."
"Becky chodally blew me off." = "What a betch, Becky is like, totally off my friends list."