Apparently, “That’s what he said” means exactly the same as the popular sexual pun, “That’s what she said”, but with a masculine personal pronoun.
This phrase can be used when talking about one’s sexual engagement with a guy. It can be manipulated almost anywhere and everywhere to make seem even a simple dialogue or a sentence, sexual.
For example,
Philippe: “Have you tried that new recipe in an oven?”
John: “Yeah, but it was so big that I could not fit it in.”
Philippe winks: “That’s what he said.”
a way of agreeing with a someone; to support one’s claim (Color of Ink may Vary)
Maddy: Hey Mike, i just wanted to know if you could sign this to help save the turtles.
Mike: No Fuck Them Turtles.
Kevin: Yeah what he said but in red.