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1.
Originated from the surfing culture to refer to the act of hanging all ten toes off the front of a long board while surfing a wave.

Now refers to the art of kickin’ back and having a chill day.
Responsible Worker: “Man, I am stuck in the office till 9 and the boss just asked me to come in on a Saturday. What are you doing Joe?

Joe: “I am sitting on my porch putting down some frat water…Just hanging ten and living the dream”
by J. Bone November 15, 2007
 
2.
A surfer who's well endowed.
"Is that a sea cucumber in your board shorts or are you hanging ten?"
by surferlover August 22, 2011