1. It's used in the meaning like " damn homie". It's a way of mocking somebody, but not in a bad way, more in a funny way.
2. Can also be used in terms like when you see a nice car, an expencive watch etc.
Amin: Your momma so hairy, she got afro on her nipples.
Other guys: " Ollløø"
2. "Ollløø homie, that sure is a nice whip you got there!"