As another poster has said, due to it high content of saturated fat. Butter remains healthier than butter substitutes, e.g. margarine.
Small amounts of butter should not be a cause of concern, but only when butter or other dairy products are the major source of fat for someone.
As a personal anecdote, I believe that the composition of the fat one eats is very important for cardio-vascular health, because some years ago I had been diagnosed with incipient atherosclerosis.
This has scared me, so I have analyzed what unhealthy habits I might have had. At that time, I was eating very large quantities of dairy products. I could not identify anything else that was suspicious, so I have stopped eating dairy (except whey protein or milk protein, which are fat free) and I have ensured from that day on, that more than 90% of my daily intake of fats comes from a mixture of vegetable oils where oleic acid is dominant and essential fatty substances are in adequate amounts.
After a year, I no longer had any symptoms of atherosclerosis and there were also other obvious health improvements, because some signs of bad peripheral circulation, e.g. cold feet, had also vanished.
Few things in human nutrition are certain, due to the impossibility of doing experiments with humans, which could result in death or permanent health problems.
Nevertheless, it is most likely that fat should provide a good fraction of the total amount of energy, i.e. between 1/4 and 1/2, e.g. around 1/3, and the fatty acid profile should be thus that monosaturated fatty acids, i.e. mainly oleic acid, must be dominant.
Examples of food sources with fats where oleic acid is dominant are: high-oleic sunflower oil, olive oil, avocado oil, several kinds of nuts, e.g. cashew nuts, almonds, hazelnuts, pistachio, peanuts.
While such a fat with oleic acid must provide most energy, there must also be fat sources which provide essential fatty substances, e.g. linoleic acid, vitamin E, omega-3 fatty acids. (As an example of healthy daily intake, I cook my own food and most of the fat comes from the oil I mix into food after cooking, which for a day contains 50 mL of high-oleic sunflower oil or of EV olive oil + 20 mL of classic cold-pressed sunflower oil + 10 mL of cod liver oil. The cold-pressed sunflower oil is for linoleic acid and vitamin E, the cod liver oil for DHA, EPA and vitamin D.)