The first malo is the first person singular present active indicative form of the verb malo, malle, malui, prefer, rather. The second word comes from malus, -i, which means apple tree. It's form is ablative, specifically "ablative of place where." The third malo comes from the masculine form of the adjective malus, -a, -um, which means bad. Used without a noun, it becomes a substantive, usually understood to mean a bad man. It's in the ablative case, which is also used to express the second half of a statement of preference (e.g. I would rather be this than that). The last word comes from the neuter form as the same adjective as the third malo, and as a neuter substantive, it means something like in a bad way or in a bad situation. It is in the ablative case again, in a situation that is linguistically similar to the ablative of place where above.