This phrase is British slang. It is very informal and best used in casual conversation among friends. Blow that for a lark, let's just order a pizza instead of cooking.
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Frustration Expression
This phrase often expresses a person's frustration or annoyance with a situation or suggestion. Sod that for a lark, I won't spend hours in traffic for a short meeting.
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Not Worth the Effort
Use it when you believe that the effort required to do something isn't justified by the rewards. Blow that for a lark, it's not worth climbing all those stairs just for a view.