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I think the extra U emphasizes the insertion of the word "You" as in You Ugly.
A perfect example can be found in Flick - Wild Cats.

"U-G-L-Y...you ain't got no alibi Uugly, Uugly...yo mama say Uugly"
by D. Ferrel September 24, 2003
Uugly (pronounced-You-gly) means double ugly.
Man, that chick ain't just ugly, Shes Uugly.
by Vdubbs March 21, 2008
A person place or thing so ugly that an additional u must be inserted into ugly to do the person place or thing justice
Marzipan is one Uugly cartoon character. She looks like a broom with a dress.
by SexBomb August 13, 2003
Another word for whats up or what it do. Started in central Cali by a couple a half breed Outa Bakersfield.
Ah U UGLY Nigga What U Been Up 2.
by Wataboy September 14, 2007