Health literacy is a central resource for health-related decisions. Since the 1970s, however, the understanding of this term has changed in several ways. Initially, health literacy was considered only from the point of view of individual competencies, but in recent decades it has evolved into a more contextual understanding. Despite this conceptual evolution, current social and health challenges are still not adequately addressed.This article reflects on the developments in the understanding of the concept and on the relevance of health literacy in the face of the current polycrisis. Reference is made to a recent concept paper developed by the authors, which shows that health literacy is a central resource at the interface of healthcare, disease prevention, and health promotion and that it can occur at different levels and in different forms. The discussion on health literacy also highlights the need to consider the challenges of systems, organizations, and settings, as decisions about health and well-being are made in all these contexts.The importance of health literacy as a key resource is increasing, particularly in addressing current social challenges, and is gaining additional relevance as a social determinant of health. Health literacy interventions can only be effectively developed, implemented, and evaluated if a shared understanding of health literacy exists, current challenges and contexts are considered, and key stakeholders act together when implementing measures.