There is a grim humor in irony, and it is perhaps the most powerful tool to unlocking the movement of literature. When it is verbal irony, it is often blame cast in words of praise—see Job: “No doubt but ye are the people, and wisdom shall die with you.” When it is situational or circumstantial irony, it is a distinction between appearance and reality, dramatic reversals, recasting the expected, and limited vision. It is not sarcasm, but might be closer to innuendo.
Dramatic Irony – Knowledge held by the audience which is unknown to the characters.
Walter Brylowski: “Irony is a mode of perception in which two or more views of the same thing exist: one limited, the other(s) less limited.” In other words, irony works when meaning is partially concealed. Oedipus, like Square, for instance, is the protagonist who is an ironic perceiver, the limited perceiver, the hero who does not understand the truth and who slowly has the truth unveiled to him. The irony becomes tragic when the limited perceiver (ironically) speaks lines that have other meanings (s)he does not realize: Oed: “I will seek out this murderer wherever he be.” In Flatland, the ironic perceiver, the Square, also is ironically reversed to place the Sphere in the position of limited perception!
Epiphany – First coined by James Joyce, this is the moment in a story in which “the commonest object . . . seems to us radiant.” It is the moment when our hero’s limited perception is partially or completely uncovered and she recognizes a truth. However, sometimes the protagonist never sees that truth and the epiphany belongs to the reader. Think: Aha!