What it means
That thingy you've been hunting high and low, and the whole time it was parked right there in plain sight, laughing at you from like two inches away. It's the universe's tiny way of saying you're a bit of a plonker, usually after you've torn the place apart for keys that were dangling in your hand. A classic facepalm moment, delivered with a wink.
Usage examples
"I spent twenty minutes scouring the house for my glasses and they were under your nose the entire time — on my face."
"You’re stressing about finding a date for the party? Mate, she’s been under your nose for months. Look at your flatmate’s sister."
"The remote was under your nose — literally under your nose, sitting on your top lip where you balanced it when you got up."