1. A term used to describe
something that is cool and exciting, or just generally
something you would want to experience.
2. In literal terms, it means if something is on fire, or catches fire.
1.
John: That party last night was lit!
Dave: Yeah, it was pretty nice! Let's go to more parties like that!
2.
John: HOW IS THE
KITCHEN ON FIRE?!
Dave: I... might have accidentally lit it on fire while cooking
breakfast...
John: You fucking idiot.