Question

Why is Malvolio’s desire for Olivia seen as a joke?

Answer 1

The answer is  He is clearly no match for Olivia in terms of temperament and social status.
In the story, Malvolia Held the status as head servants and Olivia Held status as a Countess. During the period when the story take place, Status played a more important role in finding mates than love aand desires. The women even often have no right to choose the suitor because her family could use her marriage to rise the family status.