I've seen this phrase used quite a bit especially related to conspiracy theories and the like. What exactly does it mean?
it kind of means your calling someone paranoid, or something odd happens and you tell someone you know thats paranoid (or a conspiracy theorist) to put on a tin foil hats.
it is a joke, somewhere in a show or something, they put on tin foil to keep there brains from being scanned or something.
and when people talk about conspiracy theorists ( or joke about them) they often talk about them being scared and putting on the hat to protect themselves from aliens and such.
its often referenced in media.
im not well versed in the subject and thats about the best answer i can give.