In this episode, we continue to see the closeness between Hamlet and Horatio as well as Hamlet's displeasure with basically anyone connected with his uncle's court at this point. He and Horatio speak privately to one another when Osric comes in, and Hamlet explains,
Let a beast be lord of beasts and his crib shall stand at the king's mess. 'Tis a chough, but, as I say, spacious in the possession of dirt. (5.2.91-94)
Osric, apparently, owns a lot of land and is quite rich, and Hamlet claims that even though he's an idiot, these facts earn him a place at Claudius's table. Despite the reality that Osric is an imbecile, he owns a lot of dirt (land), so he is well-treated by the king. This recalls the vanity and dishonorable nature of Claudius and those he holds dear and further contrasts with old King Hamlet, Claudius's brother. Hamlet proceeds to tease Osric, telling him to put his hat back on. When Osric claims that it's too hot, Hamlet says it's cold. Osric agrees. Then, Hamlet claims that it is actually hot, and Osric agrees again. Hamlet mimics Osric's speech, making fun of the man who does not even realize it; Hamlet's cleverness (as well as Horatio's) is again also on display. He can get away with his rudeness because everyone still thinks he's a bit crazy.
Osric also presents Laertes's challenge to Hamlet, again bringing to mind what the dutiful son ought to do when his father's honor is wronged by another. Hamlet has still done relatively little to avenge his own father, despite his constant worrying about his own cowardice and responsibility.