Verbal irony is basically speech where the opposite meaning is meant. Unlike dramatic irony, the speaker is well aware that he/she is incorrect in what he/she is saying and displaying.
A simple example is someone saying "Wonderful", "Fantastic" or "Charming!" in reaction to something negative occurring.
Another example would be someone referring to someone's son-in-law as their 'favourite', when infact that is far from the truth.
An example in literature from William Shakespeare's Julius Caesar is "Yet Brutus says he was ambitious; And Brutus is an honorable man." said ironically by Mark Antony.