This phrase is British English slang and might not be understood internationally. You'll find that Ellie can't dance for toffee, but she has a great time trying.
Pro Tip 2/3
Humorous Tone
It's often used in a humorous or light-hearted way to describe someone's lack of skill. He can't cook for toffee, so we might need to order takeout.
Pro Tip 3/3
Not Insulting
Although it points out a shortcoming, it's usually not meant to be an insult. My sister can't sing for toffee, but everyone loves her energy on stage.