It can often be intended ironically, especially when somebody has done something dubious or unhygienic but still feels the need to tell others about it.
HMB: Hey, I got sworn in at the high court this week as a lawyer! Woo hoo!
DTM: Oh wow! Respect! I'd imagine you're over the moon about this!
HMB: Yes. Yes, I am. *prouds*
Conversation 2 (ironic usage):
HMB: I breathed on a kitten once, and it got real sick. *prouds*
DTM: Dude, WTF.
Wow! Your girlfriend is proud.
Hello Mrs. Smith. You're looking quite proud on this fine evening.
I want to motor boat her proud.