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Directly translated, it means "It walks", or "it'll walk" – a rough translation of the meaning into English would be "Eh, it'll work".

In fact, I could swear I've heard the phrase "I'm gonna let this walk for now" as in "I'm gonna let this infraction pass unpunished" in American English in a movie or something, but Google doesn't seem to be throwing up too many references for that. But you could imagine it in the same way too, as "let it walk".

"I'm going to let this slide" is the closest thing that springs to mind, but I wouldn't be surprised if some regional dialect somewhere uses "walk" like that.

Loosely: Literal translation (syntax): It walks, or, it moves. Meaning (semantics): It is acceptable, or, it is accepted (by people, so no need to do better).

चलता है literally means walks/moves/works. But in this context it means tolerating mediocrity and not complaining about it. GP is alluding to this widespread mindset.