Learn Hardcore Icelandic: Hvernig líður þér núna?

It specifically asks about your physical or emotional state at this moment. It’s common after something has happened (e.g., after an illness, injury, or difficult news). A general small‑talk greeting would be more like Hvernig hefurðu það? or Hvernig ertu?

Why is it þér and not þú?

Because líða (to feel, in this sense) takes the experiencer in the dative case. The dative of þú is þér. Literally, the structure is like “How is it feeling to you?”

Why is the verb líður third person singular when I’m talking to “you”?

With the feeling-meaning, líða is impersonal: there’s no grammatical subject like “I/you.” The verb surfaces in 3rd person singular and the person who feels is in the dative:

Mér líður vel. (I feel well.)
Þér líður illa. (You feel bad.)
Henni líður betur. (She feels better.)

How would I answer this question naturally?

Use the dative pronoun plus líður and an adverb:

Mér líður vel/illa. (I feel well/bad.)
Mér líður betur/verr. (I feel better/worse.)
Mér líður ágætlega/þokkalega. (I feel fine/so‑so.) You can add politeness: Takk or Takk fyrir. Example: Mér líður betur núna, takk.