The phrase means that every difficult or unpleasant situation has a positive aspect to it, or that there is hope even in the darkest times.
The phrase is believed to have originated in the 17th century and was popularized by John Milton, who wrote in 1634 in "Comus: A Mask Presented at Ludlow Castle" that "Was I deceived, or did a sable cloud Turn forth her silver lining on the night?" It became a proverb over time.
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