It usually means the speaker thinks there is a very bad smell in the room and is expressing disgust, not necessarily making a deeper statement. In everyday conversation, “disgusting” is a strong word used for something that feels gross, repulsive, or extremely unpleasant, including smells.

What it can imply

  • They genuinely dislike the odor and want it to stop.
  • They may be reacting emotionally or exaggerating for effect.
  • In some cases, they could be teasing, complaining, or trying to get attention.

How it sounds in context

  • “It smells disgusting in here” = “This smell is really awful.”
  • It is stronger than “it smells bad” and more like “this is gross.”

Common reactions

  • “Yeah, it’s really bad.”
  • “What is that smell?”
  • “Let’s open a window.”

Tone note

If someone says this, they are usually criticizing the smell, not insulting a person directly, unless the context clearly points to someone being blamed for it.

TL;DR: It means the person finds the smell very unpleasant and is likely complaining about it.