Cocolo means a black person that speaks english. It means black person in the same sense that gringo or yankee means white person. It can be a racial slur if the speaker wants it to be (just like gringo) but it is not a spanish word for nigger. It originally referred to blacks that came from english speaking Caribbean Islands and settled in spanish speaking islands.
1) Drink that rapper Fabolous invented which consists of Coconut Ciroc w/ Pineapple juice
How he came up with the name: 'Coco' means coconut in Spanish 'Loso' comes from "Fabuloso", which means Fabulous (or how he rather spell it 'fabolous') in Spanish as well.
Variation: "Cocolo" means black in Dominican Spanish/Slang so my guess is that Fabolous combined both terms "Coco" and "lo + so" to come up with "Cocoloso" in the end, very clever indeed.