While a couple of others have responded, I believe those interpretations to be slightly off-track.

With
much of what Hamlet says throughout the play, his words have multiple meanings, as he loves to play
with words, and it’s often the underlying or implied meaning that he intends, rather than the surface
meaning that the other characters take as meaning; as a result, Hamlet brings about intentional
misunderstanding and misdirection. In the case of Ophelia, she was previously his love interest, perhaps
even as his lover; so, he often responds to her with words that carry an innocent meaning on the
surface, but in reality, meaning something with a sexual connotation. Therefore, to understand what
Hamlet is implying with “groaning”, we have to go back a few lines in the scene.

Going back to Act 3, Scene 2, line 102, Hamlet sits down next to Ophelia before the play-within-a-play
begins:

HAMLET

Lady, shall I lie in your lap?

OPHELIA

No, my lord.

HAMLET

I mean, my head upon your lap?

OPHELIA

Ay, my lord.

HAMLET

Do you think I meant country matters?

OPHELIA

I think nothing, my lord.

HAMLET

That’s a fair thought to lie between maids' legs.

OPHELIA

What is, my lord?

HAMLET

Nothing.

In this conversation, Hamlet already is playing with words. First, he asks Ophelia, “Lady, shall I lie in your
lap?” which definitely is a provocation of sexual intent - To “lie in one’s lap” was slang for “to have sex
with.” Ophelia catches this implied meaning and turns him down. So, Hamlet “clarifies” the question as
if he felt an affront: “I mean, my head upon your lap?” as in placing his head in her lap, which is the
meaning she now takes, as the innocent act of laying his actual head on her lap; in other words, “I just
meant I wanted to lay my head on your lap. Why are you getting so worked up?” This then is the
meaning Ophelia understands and she consents to Hamlet’s head in her lap, however, it is not the
innocent placing the head of his body onto her lap that he truly means here, but placing the head of his
manhood into her “lap.” He then continues his play with words, appearing on the surface to be
apologizing for her misinterpretation of his meaning, when in fact, he meant the statement sexually. “Do
you think I meant country matters?” means “Do you think I meant having sex with you?” The word
“country” is a pun on another less socially acceptable word for female genitalia. Shakespeare (and
Hamlet) sidesteps the mores of society by using “country” instead of the other word, which would be far
more direct and to his point. Ophelia clearly doesn’t understand his implied meaning - “I think nothing,
my lord” - so, Hamlet capitalizes on the moment: “That’s a fair thought to lie between maid’s legs.” This
line is a very thinly disguised reference to how pleasant it is to lie between a woman’s legs and have
wondrous sex with her. But again, Ophelia misses his meaning - apparently either distracted by the
theatrical players or being just plain dense. Either way, Hamlet gives up his efforts to tantalize her for
the moment when he replies “Nothing.” to her question.
Then moving to line 230:

OPHELIA

You are as good as a chorus, my lord.

HAMLET

I could interpret between you and your love, if I could see the puppets dallying.

In line 230, Ophelia compliments Hamlet on his analysis and insights into the play-within-a-play, The
Mousetrap. But Hamlet, being the wordy wit that he is, turns the tables on Ophelia. He picks up the
sexual innuendo again in his reply. “If I could see the puppets dallying” implies “If I could see or watch
the puppets (players) dallying (having sex with each other)”, then he could determine what Ophelia’s
love desires are. Ophelia misses this point, thinking he is only being witty.

OPHELIA

You are keen, my lord, you are keen.

While “keen” does mean “to be sharp or witty”, Hamlet applies a different meaning to “keen” as in “to
be penetrating”, but doesn’t stop there. He also applies the connotation of “being enthusiastic or
extremely excited about” or “having a strong feeling or desire” an activity. In doing so, he twists “keen”
into “being enthusiastic or have a strong desire to penetrate”, as in sexual intercourse. Thus, he is right
back to where he was earlier - implying that he desires to have sexual intercourse with her (“to lie
between a maid’s legs”).

HAMLET

It would cost you a groaning to take off mine edge.

His reply to her “It would cost you a groaning to off mine edge” means “If you have intercourse with me,
that will relieve my lustful desires (“take off mine edge.”) The “groaning” implies sounds of sexual
pleasure Ophelia will exclaim as Hamlet takes her.

So, there you have it - a steamy scene of sexual innuendo where the intended target completely missed
the meaning, which is probably what Hamlet (and Shakespeare) intended in the first place. He wins, but
nobody actually loses.