Used by illiterate people who type too fast, have cobwebs on their delete key, and smash their head on the keyboard in order to form coherant sentences, lzolz is much like lolz, which is a form of lol, which stands for laughing out loud.
omgogogmgogoggkso i was lieke tolaltlyl shopoplifitign otday!!1111121 lzozlz omfgmzz i am os ocoll!111
When you are sleeping and laughing out loud at the same time (lol + zzz = lzozlz)
Hahahah, that's so funny. lzozlz... goodnight