The characters combine literally and powerfully to mean “[is] fond of eating [and is] lazy at working.” The structure is a parallel contrast: one actively enjoys consumption while one actively avoids production.
The idiom “好吃懒做” is deeply rooted in China's traditional agrarian society, where diligence (勤劳, qínláo) was not just a virtue but a necessity for survival. A family member who was “好吃懒做” was a direct threat to the well-being of the entire household. This cultural value of hard work and frugality remains strong today.
This term reflects a cultural emphasis on contribution to the collective (family or society). To only take (eat) and not give (work) is seen as a significant moral failing.
“好吃懒做” is almost always used negatively and is highly informal. It's a common criticism you might hear in everyday life.