To feel like you are the best, either in general, or at something, as in the metaphorical, cartoonish representation of feeling sexy, when one rubs ones hands around ones body.
Example 1
Dude 1: Damnnnn, that nigga beat him for the number one spot!
Dude 2: Yea, you know he's feelin' himself right now. Look at that face.
Example 2
Dude 1: How many straight wins do you have? Not as many as me, that's for sure.
Dude 2: Yea, ok, feel yourself, homie.
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What you say about or to someone who have gotten arrogant, boastful, and beside themselves.
Since you're feeling yourself then you can pack your bags and get out of house.