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The term ‘Allow’ or ‘Allow it’ means to allow something to happen, leave it alone or to run its’ course.
The definitions from ‘Urban dictionary’ date back from 2004, and this phrase is used mainly in places in and around London.
It has recently been moved into the public eye via a recent movie called ‘Attack the Block’ which is based in South London during a SPOILER ALERT alien invasion.
(Trailer: http://www.youtube.com/watch?v=cD0gm7dHKKc&feature=related )
In the film, it is frequently used by the alpha member of the group as a way of showing his dominance over the group and keeping control.
In this fashion, ‘ALLOW IT’ is sometimes used as a means of taking control of a situation in a dominating or threatening way.
Similar to this, a phrase commonly used by a referee on the TV show ‘Celebrity Death Match’ says ’I’ll allow it’ when a foreign object is used in the ring and implying that anything is just about legal in the ring. [e.g. a power drill etc.]
It is used in various humorous contexts, especially when referring to a ‘taboo’ or ‘sinister/perverse’ situation. [see picture involving ducks]
This term is relative to people who use it, and to with a particular dark and/or dry sense of humor.
‘Allow it’ has only recently been applied to pictures, however the number of pictures has grown as the pictures have circulated.