What term describes the use of a word or phrase in a way that contrasts its literal meaning?

The term that describes the use of a word or phrase in a way that contrasts its literal meaning is irony. Irony occurs when there is a discrepancy between expectation and reality, often leading to a situation where the opposite of what one would normally expect happens. This can be conveyed through verbal irony, where a speaker says one thing but means another, highlighting a contrast between the literal meaning of their words and the intended meaning. For example, saying "What a beautiful day!" during a storm captures the essence of irony, as it contrasts the literal interpretation of the words with the actual weather conditions.

Simile, on the other hand, is a figure of speech that makes a comparison between two different things using "like" or "as," and does not inherently involve contrasting meanings. Allegory is a narrative technique where characters or events symbolize deeper meanings or moral lessons, rather than focusing on wordplay or contrasting the literal meaning. While "Ironic" refers to the quality or state of being ironic, it does not denote the broader concept of irony itself, which encompasses multiple forms of contrasting meanings.