The quote is from Lewis Carroll's "Alice's Adventures in Wonderland," where Alice interacts with the Cheshire Cat, the Mad Hatter, and the March Hare. In this conversation, the Cheshire Cat gives Alice directions to find the white rabbit, though he humorously comments on the madness of the characters involved.
When Alice expresses concern about encountering mad people, the Cheshire Cat reassures her that madness is common in their world, highlighting the whimsical and surreal nature of Wonderland. The dialogue emphasizes the playful and nonsensical tone characteristic of the story, as well as the theme of embracing the absurd.