Literally it means "make chili with the tail" which does not makes sense, but it means that the person is going to be VERY angry, upset or enfuriated.
It;s also common to say "hacer chile con el rabo" same thing. Some synonyms, words or similar expressions can be to be extremely angry, enfuriated
Used in Mexico as well
"Maria va a hacer chile con la cola cuando ella se entere que su novio ha estado engañándola con su mejor amiga. Maria is going to be enfuriated when she finds out his boyfriend has been cheating on her with her best friend."
