Verbal Irony
Definition:

Often called sarcasm

Irony in which a speaker uses words to convey a meaning that is opposite from the literal
meaning.

Often, verbal irony is sarcastic to the reader, but the characters in the story may not realize the
speaker's sarcasm as the readers do.
Examples:
In Shakespeare's Romeo and Juliet, Act I Scene V
Juliet says, “Go ask his name: if he be married.
My grave is like to be my wedding bed.”
Juliet tells her nurse to find out who Romeo is and says if he were married, then her wedding bed
would become her grave. This is a verbal irony because the audience knows that she is going to die on
her wedding bed.
In Shakespeare's Julius Caesar Act I, Scene II,
Cassius says, “‘tis true this god did shake”
Cassius, despite knowing the mortal flaws of Caesar, calls him “this god”.
In Hamlet by Shakespeare, in Act I Scene II,
Hamlet responds to his uncle (Claudius), “I am too much in the sun”
This is verbal irony because Claudius is asking Hamlet why he is so gloomy and “in the clouds”.
Hamlet's response seems as though he is saying that he is happy and “in the sun”, but really implies
that he is the son of the king and still grieving the loss of his father.
Helpful link:
Provides several examples of irony and differentiates between the types.
http://literarydevices.net/irony/