I cannot understand these sentences:" anything with an "o" in it"
The text below is an extract from a film called The Vampire Diaries. Jeremy is a high school student who deals drugs. He's also in love with a girl called Vickie who is older than him. She works in a grill and uses drugs. She has been recently survived from a vampire's attack. She is compelled that she has been attacked by an animal not a vampire. In the extract below, she has left the hospital. Coming back to the grill, she meets Jeremy by accident.
Jeremy: Vickie, what are you doing here?
Vickie: Fighting with Robert about my schedule.You'd think getting ripped up by a rabid animal would merit an extra sick day.
Jeremy: Are you feeling ok?
Vickie: I hurt.
Jeremy: Well, the doctor gave you something, right?
Vickie: The kid stuff. Nothing with an "o" in it. I think they were onto me.
[Jeremy gives Vickie some pills]
Jeremy: Here. Knock yourself out, literally.
Vickie: Thanks, Jer.
Jeremy: So you gonna, uh, watch the comet later?
Vickie: I hadn't really thought about it.But I could be talked into it.
I'll meet you out there in a few.
I cannot understand these sentences:" anything with an "o" in it"," I think they were onto me". and "Knock yourself out, literally".
Why does Jeremy says "literally"?