embarrassment / predicament
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embarrassment
A state of discomfort or self-consciousness, often caused by an embarrassing or unpleasant social situation. You feel unsure and do not know how to react.
Als er ihren Namen vergaß, war ihm die Verlegenheit deutlich anzusehen.
When he forgot her name, his embarrassment was clearly visible.
'Die Verlegenheit' (embarrassment/predicament) is the noun related to the adjective 'verlegen', which means 'self-conscious' or 'embarrassed'. If you know 'verlegen' (embarrassed), you can easily work out the meaning of 'Verlegenheit' as the state of being embarrassed.
Er wurde rot und schaute verlegen auf den Boden.
He blushed and looked down at the floor, embarrassed.
Common phrases are 'in Verlegenheit geraten' (to get embarrassed), 'aus Verlegenheit' (out of embarrassment), or 'seine Verlegenheit verbergen' (to hide one's embarrassment).
Aus reiner Verlegenheit begann sie, über das Wetter zu reden.
Out of pure embarrassment, she began talking about the weather.
To express that someone's embarrassment is visible, a dative construction is often used: 'Die Verlegenheit war ihm anzumerken.' (His embarrassment was noticeable.)
Ihm war seine Verlegenheit deutlich anzusehen, als er den Fehler bemerkte.
His embarrassment was clearly visible when he noticed the mistake.
The expression 'jemanden in Verlegenheit bringen' (to embarrass someone) is very common. The person who is put into the embarrassing situation is in the accusative.
Deine indiskrete Frage hat mich wirklich in Verlegenheit gebracht.
Your indiscreet question really embarrassed me.
The meaning 'Notlage' (emergency/predicament) or 'finanzielle Schwierigkeiten' (financial difficulties) is outdated and is now used almost only in formal or literary language. It is very rare in everyday speech.
Der plötzliche Jobverlust brachte die Familie in große Verlegenheit.
The sudden job loss put the family in great difficulty.
uncertainty
'Unsicherheit' and 'Verlegenheit' can both describe an unpleasant feeling in social situations. 'Unsicherheit' is more general: you feel unsure, have little self-confidence, or do not know exactly how to act. 'Verlegenheit' often arises from an embarrassing or uncomfortable situation. In that case, you do not know what to say or do. The words can be confused because embarrassment often includes insecurity as well. If the situation is embarrassing, 'Verlegenheit' is more precise. If it is more about a lack of self-confidence, 'Unsicherheit' fits better.
Die direkte Frage brachte Tom in Verlegenheit.
The direct question embarrassed Tom.
Lea hat im Gespräch ihre Unsicherheit schnell verloren.
Lea quickly lost her insecurity during the conversation.