Dramatic irony is when the audience knows more than the character. It creates tension and suspense. Situational irony occurs when there is a difference between what is expected to happen and what actually happens.

What is it called when the reader knows something?

Dramatic irony is a form of irony. It is both a literary and theatrical device in which the reader or audience knows more than the characters they are following.

When you know more than the characters on stage?

Dramatic irony is when your audience has more information than your character(s) in a story. This nifty literary device became popular in Greek tragedy – and, true to the genre, the different point of view often leads to tragic outcomes. One famous example of dramatic irony is in Shakespeare's smash hit, Othello.