- When somebody does something (usually accidentally) to offend/hurt/bother/inconvenience you, but you aren't really that offended/hurt/bothered/inconvenienced (or you don't mind it), you respond with "You're good"; basically it means "it's not a big deal" and the purpose is to alleviate guilt or blame of the other person.
- When someone does something particularly industrious, clever or witty, you may respond to them "You're good", with emphasis on the word "good". Generally it is a comment, but can also be a general statement or a concession (see touche).
A waitress accidentally spills wine on a patron at a restaurant.
Waitress: Oh my gosh I am so sorry! So sorry!
Patron: It's fine, you're good!
Pedro (holding a videotape): I have the tape of you getting gangbanged right here.
Lisa (grabs tape out of Pedro's hands and breaks it): Hah! You can't blackmail me now!
Pedro (smiling): Bitch, please you think that's the only one I made? Of course I have another one. You're screwed, bitch.
Lisa: Shit... you're good.