Originally meant "lots of love" about 5 years ago on Windows Messenger that everyone used.
Some people started to get confused when their friends of the opposite sex would say "lol."
It was thought they were giving them virtual love, however, now most internet people are aware that over the years it has transformed to "laugh out loud." This is a virtual expression of amusement which is over used in the internet society.
mYMSNnAmEiSsOAnNoYiNg! says: howz u?
BuFfTiNglUFfUlOlZOmGiNitTiYErmIneTOo says: gdgd bit drunk tho
mYMSNnAmEiSsOAnNoYiNg! says: lol