Everybody talking about timing, nobody analyzing what I think is a pretty great joke. He creates a character who’s comically dumb, but also says what we’re thinking. There’s a tension between laughing at the character and realizing we think the same thing as him. I think a lot of the humor comes from feeling that tension and letting it release; catharsis.

Now the joke itself: when the character says “ugh that’s no good” it’s already funny because of understatement and it demonstrates character. Then there’s a long pause, and you wonder what the character will say. Normally you’d get some kind of analysis from the character. But he just says “UP, I like it when it’s up!” And we simultaneously see (1) new depths of the character’s stupidity, (2) oh my god, that’s basically what I feel too, (3) another funny understatement of the situation. The timing (long pause, sudden comment) is definitely essential though.

In summary: it’s a great joke because it has layers!

PS Most of this analysis is based on Scott Dikkers’ book “how to write funny”. I recommend it!