Shake that Laffy Taffy, jolly raunchy rapper

from Chance The Rapper (Ft. Childish Gambino) – Favorite Song Lyrics on Rap Genius

Meaning

Chance plays off of two candy names. The first in Laffy Taffy and is a reference to a popular song by rapper D4L:

https://www.youtube.com/watch?v=3NXBgSCSrIk

Jolly Rancher is the second term mentioned. Chance is also saying that he’s a happy, even sometimes raunchy rapper. Lastly, rapper could be replaced with its homophone “wrapper”, as Jolly Rancher candies come individually wrapped. With the rauncyness involved, this could be a subtle reference to lean, an alcoholic drink with candy, (such as Jolly Ranchers), at the bottom for taste.

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