KY 463 begins at an intersection with KY 160 in Gordon, within the southwestern part of Letcher County. It travels to the northwest, paralleling Line Fork, and leaves the fork. The highway intersects the eastern terminus of KY 510 and begins paralleling Trace Branch. It curves to the north-northwest. It curves to the northwest and crosses over the branch. It then gradually curves back to the north-northwest and then to the west-southwest. Then, the highway enters Perry County.