There are a few different meanings. 1) It's all "wrapped up" can literally mean something is wrapped, like a gift or a baby "wrapped up" in a blanket. 2) I'm totally "wrapped up" in my studies means completely absorbed or preoccupied. 3) I "wrapped" up the deal yesterday means I settled or concluded it. (It's all wrapped up) 4) My neighbors were "wrapped up" in criminal activities means involved.

wrapped up: 1. Concerned or obsessed with someone or something .( Sinem is pretty wrapped up in herself. I'm too wrapped up in my charity work to get a job). 2. Involved with someone or something. ( She is all wrapped up with her husband and his problems. She is just too wrapped up. 3. The Gift, the Perfect Gift, All Wrapped Up.