This acronym is generally used to refer to a significant other, a lover, or someone you are interested in––and has the capacity to become the most important person in your life. It has become very popular amongst teens and young adults, as well as in social media.
Additionally, it has begun to replace traditional colloquialisms in relationships in lieu of pet names like babe or boo.
Johnny and Lisa had a relationship largely predicated on social media, texting, and the occasional hookup. However, if you heard them talk about each other, then you would rarely hear them use their real names. The only word they shared was bae, and that’s all they needed.