To understant this statement u need to understand the context. The key is in the second statement: When their mouth is more open than their mind. This means people who talk too much and speak before they think. The second key is : "make a fool of" which means that talking too much without thinking will absolutely make a fool of yourself. So, "A fool is made more of a fool" means that "a fool makes himself seem stupid" when he talks too much without thinking which exposes his foolishness.