The phrase usually suggests someone is reliable and pleasant to be around. Whenever help is needed, Sarah is there. She's a good egg.
Pro Tip 2/3
Colloquial Use
Commonly used in informal settings among friends or family. My grandpa can always make me laugh - he's such a good egg.
Pro Tip 3/3
Non-Literal
It's an idiom, meaning you shouldn't take 'egg' literally; it describes a person's nature. Even after a tough game, the coach praised both teams for being good eggs.