Can be used in one of two instances

1. When it would be literally impossible for things to get any worse.

or

2. When things are bad, but not as bad as possible. If used in this way, things are bound to get much worse.
1.

"My house burned to the ground, my wife divorced me taking everything I could salvage from the fire, and I was hit by a truck on my way to the courthouse." said Bob.
"It could be worse" responded Joe.

2.
"Great, someone stole my car and I have to walk to work!" exclaimed Sam.
"It could be worse" responded Sue.
Upon saying this, the clouds became a dark gray followed by torrential downpours for the rest of the day.
by Mr. Unicorn November 21, 2010
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requesting someone to take back something they just did or said
You grab your girlfriends ass in public.
Response: Um, could you NOT? (emphasis on 'not')
by Terence Michael July 24, 2003
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A Minnesotan phrase used to emphasize indifference to the current situation. Used to portray things as not bad, and not good. Could be worse.
"Heya bud, what'cha feel about this weather?" "Oh, ya know. Could be worse."
by egor001 March 20, 2017
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A term used like a "That's what she said," or a "Yo momma," or any of the sort. Only difference is it could be the title of a porno movie.
guy1: "I got the munchies!"
guy2: "That could be a porno."

girl1: "We had fun last night."
girl2: "That could be a porno."

person1: "...I'm new to this."
person2: "That could be a porno."
by icumonyoface November 4, 2010
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On god you will NEVER catch me in that situation my g
Friend 1: "Damn my nigga reese got caught lackin"
Friend 2: *pats the 9 in his pants* Could not be me fam"
by TheTroofth October 26, 2018
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A phrase meaning that something could be over, as in when curtains fall at the end of a show
Jonny-"The Phillies are down 10-0 in the 9th inning."

A.J.-"Could be curtains for the Phillies!"
by AJtheIceman October 8, 2011
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