This song is part of a typical partner-stealing dance, a ludic dance performance game. If you want to learn the basics of it read more here at the Dance Place.
It became popular in the 1040s in the United States. It may have its origins in the Creole folksong "Lolotte Pov'piti Lolotte", as S. Frederick Starr suggests.
The popular dance as featured in the movie Meet Me in St. Louis directec by Vincente Minnelli
By the way, the word "lou" is of Scottish origin. "Loo" means "love" in Scottish, thus making the title "Skip for my love" or in other words: "Exchange your darling/yourself with mine".
