ANSWERS: 2
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Gilding is the ancient practice of gold leafing (coating objects in thin layers of gold). So in laughing at gilded butterflies, they could be referring to laughing at the extravagance and uselessness of the court much like a gilded butterfly as it is followed by "hear poor rogues talk of court news." Or, a gilded butterfly is as much of a prisoner at they are as it obviously can not fly, so they may be laughing at their own similar situation. I suspect that someone who has this tattooed on themself, is engaging in self-ridicule, if that is your true question.
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'Guilded' sort of means highly decorated or highly beautiful. Butterflies are a symbol of free-flight and freedom. Out of context, a good guess would think it implies that these things will pass and will no longer mean the freedom and beauty the two words imply.
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