When you hear the phrase what does it mean, there are a few different things that could be meant. It could be asking for clarification on something that was said, or it could be a question about the implications of something. In either case, it's important to be able to provide an accurate and in-depth answer.
If someone asks for clarification on what was said, they are essentially asking you to repeat yourself or explain what you meant in more detail. This can be helpful if there was some confusion about what was said, or if someone didn't catch all of the information. Providing more detail can help clear up any misunderstandings.
Asking about the implications of something usually requires a bit more thought than simply clarifying what was said. When someone asks what does it mean, they want to know how the thing they're inquiring about will affect them or others involved. For example, if you're considering buying a new car, you might ask your friend what does it mean when she says the car is expensive. She might reply that it means the car will cost a lot of money and could strain your budget if you're not careful. Answering this type of question accurately requires understanding both the situation and everyone's individual circumstances.