To waste time, mostly by doing insignificant tasks for self ammusement. Also could be thought of as a slang for masterbation.
Jon lolly gag's before work.
The art of deep throating. Derived from the use of lollipop in Lil Wayne's song "Lollipop".
Guy 1: Heard you hooked up with that blonde last night! How was it?
Guy 2: It was amazing! That girl can lolly gag like a champ!