He knew you were angry and hurt as soon as he laid eyes on you upon returning to prison. And even more so when returning accompanied.
Even against the wishes of many members, Merle ended up joining the group in prison. It was a very decisive occasion, after all.
More: the tension that has prevailed between you and him since he came back.
He tried to talk, in his shy and awkward way. Of course, without success. He only got shallow answers and an even more uncomfortable silence.
The worst thing was the jokes and insinuations that his brother started making when he realized that Daryl had something with you.
I mean, nothing official, but something.
"Are you okay?" The hillbilly asked quietly, seeing the blood on your clothes after you returned from a little patrol.