1.
In context, the term "dick
hair" is used in a literal sense to reference any
hair that is on your body as a result of puberty (meaning underarm or facial
hair does technically count as dick
hair) but more importantly, it's used figuratively as a point of reference to a persons age, and their implied level of wisdom and experience.
2. Used as an exploitive, non-literal sense, specifically when saying "Bruh, you're trippin', man. You're smoking dick hair." This is essentially another way to say that the person is on bullshit, or out of their mind.