This paper, positioned within two universities’ contexts on design education, explores the critical role of awareness in co-design with individuals who have lived experiences. The study introduces a SkillsLab designed to prepare students for managing awkward moments during co-design sessions. A SkillsLab is an intensive learning activity combining hands-on practice, theoretical insights, and practical exercises to bridge the gap between theoretical knowledge on a topic and the real-life application of this knowledge in a project-based setting. The learning activity aims to enhance students’ confidence and skills in navigating awkward moments in co-design. The findings suggest that such educational interventions can significantly improve students’ preparedness for real-world co-design challenges, fostering a more inclusive and empathetic approach to design.