it means "stop it"
it's american oral english
when sb say sth u dont want to hear anymore or do sth u can bear anymore,u can say cut it out..
but sometimes people just say that for joke:p
em.i think u can use it as the word “切”in chinese
我好爱你~!
!
I love !
cut it out~!
hehehehe,for sure there r some differences.:P