Yes, he's flirting with you, in a 'safe' way, so he can't be accused of harassment. But usually, if you play along and flirt back with nicknames, he'll start getting more touch feely...so I'd advise you give him the poker face look when he does this.
You're telling him you're interested by going along with this teasing, and it will most likely escalate!
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I think he's sexualling your ass (in Beavis and Butthead words), or sexually harassing in plain English.
If you feel it would poorly reflect on your career unless you play along, it's textbook sexual harassment. Conversely if that is normally done in the office, that's perfectly fine.
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either he wants you or just enjoys messing with you
Bosses do that sometimes lighten up.
he wants to get in your pants.
He is creepy
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