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It's a toilet, or rather the room containing the toilet. It's from a 19th Century Cockney word 'carsey' meaning a privy, and is itself probably derived from the Italian 'casa' meaning house. Interestingly, the original word 'carsey' could also mean a den or brothel! It does make you wonder what the old Cockneys got up to when they went to the toilet.
Malcolm's been in the karzy for an hour!
Crappin' or five finger shufflin'?
With Malcolm you really don't want to know.
Karzy by Croatalin February 15, 2014
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an affectionate gesture or greeting that involves placing one's hand upon another's stomach, often accompanied by eye contact
I passed my friend on the way to class, and our shared Karzel really brightened my day.
Karzel by Stands Dance Captain March 18, 2014
Related Words
Karzan karzy Karzy Merchant karzie Karzai karzaih karzee Karzel karzela karzen
It means a toilet; or rather it’s the room containing the toilet. Like so many other words this owes its origins to the London Cockneys who used the word ‘Carsey’ to mean a privy which makes you feel a bit sorry for anyone who is named Carsey. It is possible that the word comes from the Italian ‘casa’ meaning ‘house’ and can refer to the modern indoor facility with associated bath, shower and washing facilities. Originally, however, it meant a basic outdoor crapper, often shared by several large families which would make it interesting if several people had the squitters.

Incidentally, the Cockneys also used the word carsey to mean a den or brothel, so maybe it’s not that unusual to have it off in the bog.
Malcolm has just come out of the karzy after a ten minute residence.
Shit that means respirators on or an hour’s wait before it’s fit for humans.
Karzy by AKACroatalin February 20, 2019
Karzan is the type of person that loves his friends. If you have a friend named Karzan then that's your most honest and truthful friend. When it comes to Girls Karzan knows how to make them fall in love, but he won't notice it until someone says it to him.
I love spending time with Karzan, he's so honest
Karzan by A women with red cheeks February 27, 2021
British slang term for toilet
Originates from the Italian word "casa" meaning house.
Jimmy is in the karzy
karzy by Arjun Shah December 2, 2003
Slang term for toilet. Believed to have entered the English language via the British Army during its sojourn in British India.

See also dunny, bog,outhouse,loo, john
Where's the Karzi? My back teeth are floating and I'm about to burst.
karzi by The Sidhe April 29, 2006
Make sure you flush the Karzie on your way out!
Karzie by karientoch March 14, 2019