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Laao (laughing against all odds) has a mysterious origin but is believed to have been spawned out of a double meta style of humorous expression. What began as simply making fun of how often people seem to laugh in type, Laao has now turned into the very thing it sought to make fun of (or perhaps not).

The implicit idea of "laughing against all odds" suggests there is no reason for that person to be laughing which indicates that what was said is not inherently funny or even designed to be humorous but made someone laugh for an unknown reason. On the other hand, they could quite simply be making fun of how terrible someone's joke is and are laughing about the very idea that other people should/would/do laugh at it. Below are two examples respectfully and a bonus round to nail it home.
-"Hey, Michelle, what are you doing later? I am pretty tired but I still want to see you. Maybe a movie or a TV show?"
-"Laao! Totally up to you."

Some idiot on IG-"When you wake up and get ready for work then realize it's SATURDAY!" (caption to a monkey or baby dancing video/pic)
Someone making fun of when you jokes}-"LAAO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!" -"Hey, so later I was thinking [maybe we get apps at Melini, something really light, then cocktails at Skinni, then walk to Lust for some dancing and maybe stay at Tif's or Lou Lou's!?"
-Ugh, talk to me after I've had my coffee!"
-"LAAO!!!!!!!!!!!!!"
Laao by AutisticMomJeans October 28, 2016
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laaomfdhos 

laughing at an old man falling down heaps of stairs
Noob:Man i just nailed my self trying a 360 unispin
Stefan:laaomfdhos
laaomfdhos by Sedicee October 30, 2008
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