You're funny. What does this sentence mean?

This sentence means "You are funny and make people laugh".

"Funny" means to make people laugh and feel funny or interesting. When someone says "you are interesting", they are expressing their appreciation and love for what you say or do, and think that your words and deeds are interesting and can arouse their laughter and pleasure.

This is a positive evaluation, which is usually considered as an approval of your sense of humor and sense of humor. However, it should be noted that there may be some subtle differences in this sentence in different cultures and contexts. In some cases, it may be regarded as a kind of belittle or irony, so it needs to be understood according to the specific situation.