Using a sharp knife and cutting board, cut the seedless watermelon into fry-shaped sticks about 1 inch thick. Arrange them on a parchment-lined baking sheet.
Lightly sprinkle the watermelon fries with salt and toasted coconut flakes. Using a spatula, gently toss to evenly coat. Place the baking sheet in a preheated oven at 375°F (190°C) and bake for 8-10 minutes until slightly crisped around the edges and chilled appearance is maintained.
While the fries are baking, prepare the coconut lime dip by combining coconut milk, lime juice, honey (if using), and shredded toasted coconut in a mixing bowl. Whisk until smooth and the mixture thickens slightly, about 2-3 minutes.
Remove the watermelon fries from the oven and let them cool slightly on the baking sheet. They should be slightly firm but still juicy, with a light crispness on the outside.
Arrange the watermelon fries on a serving platter and serve with the coconut lime dip on the side. Optionally, sprinkle additional toasted coconut flakes over the fries for added texture and visual appeal.