Lolly is short for lollypop (and now "My Boy Lollypop" is echoing away in the inner chambers of my mind). The basic lolly is frozen fruit-flavoured water held on a stick which was presumably inserted before freezing. You can lick your lolly or bite bits off according to taste. Can't say I've ever seen one like the one in the picture in the article.

Bingley

Bingley