Here's an example:
Literal statement: "You look great!"
Implied meaning (irony): "Actually, you don't look so good."
In this instance, the phrase "You look great!" is uttered sarcastically, and it's understood that the speaker means the opposite. The person probably does not look great, and the speaker intends to convey this indirectly.
Verbal irony relies on the audience's ability to recognize the contrast between what is said and what is meant. It's often employed in humor, satire, sarcasm, and literary works to create a sense of surprise, amusement, or critique.