So Unfunny It's Funny is a term for comics often created by those inexperienced in comic making (otherwise known as noobs). It isn't a true genre, but more of a label.
Simply stated, So Unfunny It's Funny is a strange phenomenon of comics posted on BZPower that suck so much they're funny. Contrary to popular belief that you can intentionally make comics like this and therefore be cool, you can't.
Origins of Term
The term was first used in the context of BZPower comics when Angry Nidhiki made the claim that his original comic series, The Nidhiki and Krekka Chronicles, fell into the category. Though it could be said that this was an exaggeration made with humorous intent, it's also largely true.
Since the population of the BZPower Artwork III forum is largely made up of Unfunny people, much traffic in this forum goes to comics that meet the labeling of "So Unfunny It's Funny". Though these comics are funny at first, they get old after awhile, and it becomes annoying to many authors of well-written series. Also, another problem is that noobs who want to learn to make comics often model their work off of other "So Unfunny It's Funny" series, therefore creating an endless cycle of subpar material.
It's actually a very good way to filter noobs out of your topics.
Some believe the best example of a comic that is "So Unfunny It's Funny" is Lol with Angry Nidhiki by Angry Nidhiki. However, this labeling is usually made by the noobs who browse such unfunny comics in the first place. More accurately stated, "Lol" is a series that is made to both parody noob artwork and express the reality that fancy sprites don't matter at all. In addition, it contains many historical, literary, and popular culture references that provide ironic contrast to the initially apparent "noob aura" surrounding the comic.