The highway connects mostly rural areas of Letcher and Perry counties with Gordon and Delphia.

The highway intersects the eastern terminus of KY 510 and begins paralleling Trace Branch.

It then gradually curves back to the north-northwest and then to the west-southwest.

[1] KY 463 curves to the north-northwest and then begins paralleling Blair Fork.

It then travels under a railroad bridge and crosses over Leatherwood Creek before meeting its northern terminus, an intersection with KY 699 (Bridge Road).