One of a kind can be meant as “unique”. If I say that your hairstyle is one of a kind, it means that I will never find anymore people who have the hairstyle like you have. You are the only one who has such hairstyle. Anyway, I am not so sure if you are really the only one, but I am really interested to say that so you will feel flattered. I also can say a fact that I have never found someone with such a hairstyle. So, in this case, “one of a kind”, in general, just to say that one thing or one person is unique as far as the speaker knows.
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