If we compare ourselves to other people or measure ourselves with some metric of our own, we may come out looking pretty good. Compared to God, however, we are despicable, evil people.
God is good and, created in His image, we ought to be good, but instead, we are bad… how can that be? That’s where the “ugly” comes in - the sin within us is ugly. None of this is a problem or a surprise to God. He seeks out broken people, pays full price for us, and fixes us.