The basic gist of this reaction is that you are making a "potion" or "fluid" reaction. The game will let you, basically, take a container, some sort of fluid in the container, and then mix in some sort of soluble solid organic material in it to create a potion out of the fluid.
Or, in other words:
[FLUID] + [ORGANIC_SOLID] = [FLUID]
Yes, this means it's OK to take the same fluid, and make another potion out of it by putting some more organic solid materials in the product fluids. That's the point - you can continually refine products by continually adding more and more materials that you mix together to get different results, and build towards a complex end-product.
Now, here's where we start.

We have a poison that we extracted from some poisonous animal, like a platypus or something. It's a fluid in a bottle. It's a minor injected damage poison (meaning it takes effect when a poisoned weapon or body part scratches the victim) which causes minor necrosis. So, we can look at this, and say it has the following tags:

[MATERIAL TYPE: CREATURE EXTRACT FLUID]
[ALCHEMICAL PROPERTY: GENERIC MINOR INJECTED NECROSIS POISON]
[ALCHEMICAL PROPERTY: EW! IT CAME FROM A CREEPY CRAWLY VENOM SACK]
Now, we have a lot of this poison, but we want to do something much nastier with it than just give some minor necrosis when we put it on our crossbow bolts and shoot it at people, so we want to alchemically change the nature of this poison by doing some reactions.
Now, our cooks in our kitchens have accidentally happened to stumble upon another reaction on their own:

Rock Nut Butter
It has the following tokens:
[MATERIAL TYPE: OIL]
[MATERIAL TYPE: ORGANIC PLANT]
[MATERIAL TYPE: FOOD]
[ALCHEMICAL PROPERTY: FATTY]
[ALCHEMICAL PROPERTY: SALTY]
[ALCHEMICAL PROPERTY: CREAMY]
And cooking it with the following:

Fluffy Wambler Pudge
It has the following tokens:
[MATERIAL TYPE: ORGANIC SOLID]
[MATERIAL TYPE: FOOD]
[ALCHEMICAL PROPERTY: HIGH CHOLESTEROL]
[ALCHEMICAL PROPERTY: ULTRA FATTY]
[ALCHEMICAL PROPERTY: STUMBLY-BUMBLY]
It creates the following reaction:

+

=

Rock Nut Butter + Fluffy Wambler Pudge = Deep Fried Nutter Butter
When this reaction takes place, invisibly, [FATTY] + [UTLRA FATTY] + [HIGH CHOLESTEROL] + [SALTY] = [HEART ATTACK SPECIAL]
So, when we have the final product:

Deep Fried Nutter Butter
Has the following tokens:
[MATERIAL TYPE: ORGANIC SOLID]
[MATERIAL TYPE: FOOD] (rather dubiously)
[ALCHEMICAL PROPERTY: CREAMY]
[ALCHEMICAL PROPERTY: STUMBLY-BUMBLY]
[ALCHEMICAL PROPERTY: HEART ATTACK SPECIAL]
So, now that we have fought away all the redneck dwarves that want to actually ingest our new poison ingredient, we can finally start creating the new poison we want when we have whipped up a few batches of Deep Fried Nutter Butter.
So, we have our FLUID + ORGANIC SOLID = FLUID formula all over again:

+

=

Minor Injected Poison + Deep Friend Nutter Butter = Chest Burster Injected Poison
Where, let's say, "CREAMY" and the "EW IT CAME FROM A CREEPY-CRAWLY VENOM SACK" cancelled out.
Then, however, we get the reaction we really want - The "HEART ATTACK SPECIAL" property mixes with "GENERIC MINOR INJECTED NECROSIS POISON" to create "HEART EXPLOSION INJECTED POISON"
So, properties look like this:

Chest Burster Injected Poison
[MATERIAL TYPE: CREATURE EXTRACT FLUID]
[ALCHEMICAL PROPERTY: HEART EXPLOSION INJECTED POISON]
[ALCHEMICAL PROPERTY: STUMBLY-BUMBLY]
(Note that the Stumbly-Bumbly property from the Fluffy Wambler made it through the whole process without ever being cancelled out. Maybe that would be important, maybe it's a drawback for the sort of poison we want to create, so we'd want to go through the process again to mix in a material with a property that could cancel out the STUMBLY-BUMBLY.)
Now, we have a poison that, when we instruct our marksdwarves to dip our bolts into the poison and shoot at specific targets, the poison causes their hearts to explode out of their chests, rather than a more mundane poison effect.