You know how "it's" is basically a shortened version of "it is"? So replace "it's" with "it is" and you get "it is what it is". This version just sounds a bit more fun.
Person 1: Today at school, someone said I looked like white obama.
Person 2: Well, I mean, it's what it's.
Person 1: Huh?
Person 2: You know how "it's" is short for "it is"?
Person 1: Oh, I thought you were having a stroke.
Person 2: Well, I mean, it's what it's.
Person 1: Huh?
Person 2: You know how "it's" is short for "it is"?
Person 1: Oh, I thought you were having a stroke.
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