Every one of those lines are a palindrome. Meaning, that they read exactly the same both forward and backward. Just like Bob. That is the genius part. How in the hell did he come up with some of those lines to create palindromes? The man is a certifiable genius.
Each line/cue card is a palindrome, AND they stay in the rhythm of the song, AND they also RHYME. That is some amazing word construction right there. Some of these palindromes are famous and predate Weird Al by decades, but the way he arranges them so they feel like a Bob Dylan song is GENIUS.
He's poking a little fun at how Bob Dylan mumbles enough that people have trouble understanding him. From that idea, he decided that since it didn't matter what he said, he may as well do palindromes and named it Bob - a palindrome - after Bob Dylan.
The video is a direct parody of one of Bob Dylan's, which allows him to illustrate the palindromes on cue cards :)
Easily the best song to demonstrate Al's genius. I mean, all of his stuff is amazing but once you figure out what he did in this song, it blows you away