So, for a lot of these asexual labels, much like any sexuality label, they're some combo of words; demi- means "half" or "partial", fray- means "unraveled or worn", cupio- roughly means "I want" or "I desire". Well, Aego is two in one. A- means "without" and ego- means "I" or "myself". Taken literally, it's sexuality without the self.
So, some trademarks of aegosexuality are: being aroused by sexual content, provided it doesn't prompt them to be "part of the action", masturbate but still feel neutral or even repulsed at the idea of having sex with someone, fantasizing about sexual situations that are totally unreal or don't include themselves in the fantasy, enjoying erotic material for the scenario or the relationship dynamic rather than the participants/characters in said material. Essentially, it's finding things, scenarios, dynamics, and possibly fictional characters or scenes that couldn't possibly be real as sexy, as triggering some manner of attraction to those things without attraction to a specific real life instance or person. Because it's without you, the real, physical person involved. It reminds me of a meme I see often in ace circles: "another day of being a slut in theory but never in practice".
So, aegosexuals can enjoy porn, for example. But anything that demands audience participation is almost assured to turn "the switch" off, potentially instantly. Aegosexuals might read and enjoy smutty stories, especially those involving characters in fantasy worlds or wild scenarios, and some might even write or make art of their own or other characters who are full on sex fiends while not feeling anything at all in their own day to day for anyone. The concept of sex is arousing, but the participation isn't. Not unlike someone getting really into watching sports while never wanting to play said sport. Aegosexuals feel little to no sexual attraction in their own lives, but in their fantasies/media it can variate from "I like this adult content from time to time" to "bring on the smut".
I understand this one fairly well, because as well as identifying as Demisexual, I also certainly have some amount of Aegosexuality in me. While I can enjoy scenarios within porn, I can't place myself in those situations with the stars of the material mentally without losing all interest and arousal. If I imagine that scenario with myself and my wife? Regardless of if I'd ever want it to happen in real life (note: generally I'm not interested in porn scenarios ever happening in real life at all), if I create a scenario in my head with the one person I am sexually attracted to, I can then be in that scenario without losing all sense of interest. So anyone asking if they're sexy, or making "sexy" poses, or directing sexual thoughts or directions my way does absolutely nothing for me if it's anyone other than my wife (I use myself as an example only because I have myself as an example to use). The answer is no, I don't think you're sexy, and also if I know someone even a little bit, then neither them nor anything they personally do is sexy. Like, ever.
While Aegosexuality can exist by itself as a label, it's not uncommon for any gray ace person to possibly use it as a micro-label or extraneous modifier to further define their relationship to sexual concepts.