Danny Sanchez posted this on Facebook (it was relevant to the thread), and I’m sharing it here because it illustrates why Louis CK is, in my humble opinion, the greatest living standup comedian. He doesn’t “tell jokes,” rather he tells stories about his actual life that are hilarious. Obviously he exaggerates for comedic effect but what makes his anecdotes hilarious is that they are so realistic, and his commentary is so brutally honest.
In contrast, you have very good standup comedians like, say, Sarah Silverman or Daniel Tosh, but they’re not nearly as enjoyable as Louis CK since they’re clearly putting on an act. They’re pretending (we hope!) to be the awful person depicted on the stage, but the basic joke is that they are much more awful than the average fan watching. But (to repeat) this isn’t what Louis CK does–he is hilarious because you know he actually means what he’s saying (except for slight exaggeration for comedic purposes).
Now if you really want to get technical, part of what makes this particular Louis CK clip so funny is his analysis of his dog’s perspective. The best example of this technique I can think of is Richard Pryor explaining his trip to the jungle. (Watch out, naughty words since it’s Richard Pryor standup.)