I think it depends on the situation as to whether it upsets me or not. I don't like the word 'psycho' but it's often bandied about to describe people with mental health problems, I've actually experienced this first hand, a supervisor at my old job was overheard saying she hoped I didn't go back to work because she didn't want to work with a 'psycho' as though I was to be feared for being unwell. It's an awful term and had very negative connotations.

I think people don't really think about the words they use sometimes. People say I'm depressed after having a bad day, or even saying I'm so bipolar today if they've been a bit up and down, usually this is just ignorant people not thinking but it is really annoying. And then there's the other words crazy, mad etc that are used to describe all sorts of things. It's been a crazy day, that guy is mad etc etc. Personally I'd prefer not to be referred to as crazy but I don't necessarily take offence to it when it has been said jokingly.

If someone was talking about me and wanted to say I had mental health problems I'd rather they used the term mental health problems or my actual diagnosis. My pdoc has referred to me as having a serious mental illness in a letter he wrote for me and I wasn't really keen on that.