It's a combination of the words lol and OK. It's most commonly used when someone says something silly/stupid that you don't agree with but it's not worth your time to correct them, but it also can be used simply as an acknowledgment.
AIM Conversation 1:
IluvGWB: Don't vote for Obama because he's a muslim and a terrorist
IheartDeucesCracked: LOKL
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AIM Conversation 2:
BigSlick12345: Phil Hellmuth is the greatest NL Hold'em player alive
netPokerPro123: lokl
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AIM Conversation 3:
PokerChuck123: omg amy winehouse is the nuts. She is so smokin' hot!!!111
Aaron1234: LOKL!
An abbreviaton for laugh out kangaroo loud.It was first a misspelling but shall start a revolution!! USE LOKL AND WE SHALL SOON RULE THE WORLD!!!
(usually used only by insane people in online chat rooms)
Bob:Wise man once said he who stands on toilet is high on pot.
Zeekeryarydoodopieman:Lokl im gonna drink some toilet water after getting high on pot!!!!
A combination of lol and ok usedtogether (often because the realization is obvious.) or because you're taking immediate action on the reply - or expressing understanding. Variant is lolk which is more of an acknowledgement.
"I can't find my glasses"
"that's because they're on top of your head."
"lokl ;-)"
or
"He's gonna get play tonight!"
"why?"
"Cuz she's a dyson vacuum cleaner"
"lolk!"
Loklin is a man of intelligence and honesty. Always known for being perfect. Very few love this man but once one falls in love with him, you can never fall back out. EVER!