The phrase uses hyperbole, meaning it is an intentional exaggeration not to be taken literally. Whenever she tells stories, she could talk the hind leg off a donkey, going on for hours!
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Humorous Tone
It's often used humorously to poke fun at someone's chattiness without real malice. I didn't get a word in – you could talk the hind leg off a donkey!
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Context Specific
It's more commonly used among friends or in casual settings, not an expression for formal situations. At the family BBQ, Uncle Joe could talk the hind leg off a donkey with his stories.