I was never 'good at' the kind of banter and teasing that school kids tend to do. I was (and am) perhaps, too literal and sensitive. I love laughter and giggles, but I never felt comfortable making fun of someone or hurting their feelings, under the guise of humor. I also never knew what to do when the teasing was aimed at me. I pretty much just froze. Literally. My eyes would go all blurry and I would hear whirring in my ears and I would ignore the rest of the world for those moments.
Humor often works because of being a slightly uncomfortable (or unexpected) juxtaposition of ideas. Ayla (18 months old) thinks it is hi-larious to stick a knitting needle into a ball of yarn and then try to feed it to me, saying nom-nom-nom. The idea of the yarn being my food just cracks her up.
My husband has a strong tendency towards sarcasm which sometimes is met with great laughter and sometimes with groans, but he is often trying to lighten a moody situation, and it often works. I think humor in parenting can be a great tool. Sometimes it's enough for just me to see the funny in a situation to keep me from responding badly. (li'l toddler footprints really do look funny and kind of cute in a large pile of flour on the floor, if I can see it that way in the moment).
Since I am fairly thin-skinned when it comes to put-down type humor, I often notice when parents are 'just teasing' their kids, and the kids really don't like it. While I believe that a healthy amount of being able to laugh at oneself and one's quirky characteristics is awesome in an adult, I believe kids should be given the space to arrive there in their own time. So, if my attempts to lighten a situation with humor go astray, I just apologize to my kids, let them know that I understand where they are coming from, and move on.
If I can find the humor in a tricky situation for myself, it helps me respond in a loving way. If I can help my kids laugh and see the humor too, awesome! However, if they do not want to be 'jollied' out of a bad mood, or feel like I'm disrespecting them, then my humor would just be meanness. I try to avoid meanness.