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This joke is a classic example of wordplay, specifically a pun, that hinges on a clever phonetic similarity. The humor comes from the doctor's initial diagnosis of "type A blood" being corrected in the punchline to "type O." The key to the joke is that "type O" sounds almost exactly like "typo," which is a common term for a mistake or error in typing or writing.
In the real world, blood types are a fundamental part of human biology and medicine. There are four main blood groups: A, B, AB, and O, which are determined by specific antigens on the surface of red blood cells. The discovery of these blood groups by Austrian physician Karl Landsteiner in 1900 was a monumental achievement, paving the way for safe blood transfusions and saving countless lives. The joke playfully subverts this serious medical context, implying the doctor made an error in their initial assessment, much like a casual spelling mistake. It's a lighthearted jab at the idea of even medical professionals making simple "typos."