Something that is very ugly. Hence, it is ugly as mud.
"Dirty, smelly, ugly"
OR
When someone does something really dumb and it's not cool at all.
"BOY: You see that girl over there?
she's not wearing makeup today.
GIRL:OMG, she's so mud without it."
That guy tried to do a back-flip and he smashed his face in.
He's mud.
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