What it means
Means a kid or younger relative is a lot like their parent, in looks, habits, personality, skills, or the annoying little quirks too. Usually said warmly with a grin, though it can carry a light roast if they're inherited the parent's chaos as well.
Usage examples
"Your lad’s a chip off the old block, isn’t he? Turned up late, swore blind the satnav was wrong, then cremated the burgers and called it smoky flavour."
"The lad fixes engines just like his dad did, a real chip off the old block down to the same greasy cap."
"She has her mother's laugh and her stubborn streak too, a chip off the old block through and through."
"Look at her running the whole barbecue and bossing everyone about, proper chip off the old block, same as her mum."
"He's a chip off the old block alright, same laugh, same dodgy dance moves, same habit of acting like he's got the best plan in the room."
Where it comes from
It’s an old English phrase with roots in woodworking and masonry. A chip knocked off a bigger block is made of the same material, so by the 1600s people were using that image for children who took after a parent in looks, manner, or knack for doing things.