it means literally gay or weird, strange or out of chracter
*he sippin giggle water(he is literally gay, or wat he is doing is weird or literally gay)
*someone dipped that in giggle water(the activity being done or said is literally gay or wierd, strange, or just sumthing way out of character)
1920's slang for alcohol, see hooch
How's about some giggle water to drive those blues away?