Said when it's better for you to know someone that's a dick than to not know someone who's a dick. Or it's better to deal with someone/something you don't like than to deal with something/someone that you DON'T know. Similar meaning to keep your friends close but your enemies closer.
"Ugh that Paul's being a right knob at work... He's after that promotion!"
"Like they say though, better the devil you know than the devil you don't."
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