Original: Lol is a Dutch word (not an acronym) which, coincidentally, means "fun" ("lollig" means "funny").
Simplified: LOL is an internet slang term that means "laugh out loud" or, less commonly, "lots of love". It also means mute in Persian and is a native Dutch word (not an acronym) which, conveniently, means "fun" ("lolling" means "funny").