Camel toe is caused by eating camel feet...
Just kidding.
"Camel toe" is when you can see a woman's vagina lips through her clothing, because the clothes are so tight. It just means she's wearing very tight clothes; it doesn't mean anything else. (Except, maybe, that she has bad taste in clothes.)
Personally, I find it a turn-off. I believe that a woman who shows off her hoo-ha like that is trying too hard. (that's a generalisation of course, so it's probably wrong a lot of the time).