The phrase often implies a sad or critical view of the situation it describes. In the underworld of the city, life is cheap, and tragedies are frequent.
Pro Tip 2/3
Context Sensitivity
Be aware of your audience; this phrase might be offensive if not used carefully. Talking about the recent conflicts, he said life is cheap, which upset many listeners.
Pro Tip 3/3
Metaphorical Use
Understand it is not about actual monetary value but about the perceived importance of life. In movies about ancient times, life is cheap, with people often risking it for honor.