I think that this is a statement just before a breakup is announced.
It can be hard being with someone when you feel that you are smothered or otherwise feeling anguish about your life and you feel that your love may never fade but being together, for whatever reason, is no longer possible for you.
So you say "I love you, but I don't like you."
Also this statement could be interpreted to mean that I don't want to be friends with you. My feelings run too deep and I either have you completely in my life (love) or not at all (even as a friend).