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It refers to "Type 2" Diabetes obviously. Used in a more informal way.
Friend 1: Hey wanna grab some ice cream?
Friend 2: Nah can't bro, I got that Type 2
A handheld phaser in the Star Trek universe.

Type 1: Rifle (Shoulder fired phaser)
Type 2: Pistol (hand-held phaser)
Any main cast member off screen:

"We are arranging an away team. We need 5 type 2 phasers."

While on away team
"Set phasers to maximum stun."
Type 2 by 7-Eleven Hotdog Shill January 3, 2023

type 2 fun 

1. An activity that is fun only after you have stopped doing it.
ouch i hurt everywhere that was some type 2 fun
type 2 fun by 5951C February 8, 2010

Type 2 Fun 

The name given to the feeling of enjoyment and nostalgia when reflecting on an event that was a negative experience at the time, but is humorous or fun to look back on.
"God, I hated hiking up that mountain at the time. But looking back, I guess it was a unique experience. That's Type 2 Fun for you!"
Type 2 Fun by Carnefice January 2, 2018

Type 2 Asthma 

Like the first type, Type 2 Asthma is a respiratory condition that makes breathing very difficult. Which can cause very heavy (Sexual) breathing. But what's also unique to this, is that it causes the person to have conditions very similar to Autism. As in the person is mentally stupid and doesn't have Common Sense. Side effects of Type 2 Asthma is that it causes the person to have orgasms or act very constipated.
"Guys I think this kid has Type 2 Asthma"
Type 2 Asthma by NWCTA_Vocab March 27, 2019

Type 2 diabetes 

1. another version of diabetes
2. an insult