- 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).