The second part is suggesting that the person is vain in thinking that they're oh so attractive, when in fact a lot of people do that whole double standard thing and hesitate to talk to those considered aesthetically beautiful. The person recognizing that is a matter of observation, not vanity.
And fuck all those people that down-voted my comment. Down-vote this one too while you're at it.
I'll get down votes but I can relate to the top part. I don't think I'm stunning but I have no qualms with my appearance, however I've had several new friends tell me they thought before they knew me I'd be a bitch because they thought I was pretty. That's not the impression I want to give off. I also have people say they assumed I'd be stuck up because I like to work out.
BULLSHIT!
And fuck all those people that down-voted my comment. Down-vote this one too while you're at it.