Here's how it's typically used:
* Responding to a funny joke or comment: "That's hilarious! LOL"
* Adding humor to a conversation: "I'm so tired I could sleep for a week. LOL"
* Expressing agreement or understanding: "You're right, that's totally true. LOL"
While "LOL" is still widely used, it's becoming less common in modern online communication, with other expressions like "haha" or "lmao" often taking its place.