I watched it during the original run, and it was my favorite show then.
Some episodes were serious, some parodied things-- there were two that parodied the movies Groundhog Day, and The Producers for example. There is also one that doesn’t parody any specific story or novel, but just the idea of the people trapped in a old, dark house, and there is a murder, and then there is another that is a direct parody of And Then There Were None.
In that last parody, Lucy Lawless is out of commission with a broken hip from a horse riding accident, and the solution to have an evil god body-switch her with another warrior woman (and one she doesn’t like, just to complicate things more). That way, another actress can play the role for an episode.
Following that are three episode fans refer to as “fight light”; episodes choreographed to be easy for Lawless, and have less fighting to begin with.
There were over-the-top devices that made fun of television in general, like the idea that Xena has not one, but three lookalikes. There are musical episodes. There are dead serious drama, that can either be watched that way, or as a sort of meta-parody of the show itself.
My favorite episode is Warrior…Priestess…Tramp which I think is the funniest one of all, but I’m also quite partial to Tsunami, a very serious one (and also one that references The Poseidon Adventure, without parodying it).
So, that aside, yes, the short answer is yes, it’s funny. It’s also very serious, sometimes, but serious in a way you can take or leave, you can choose.
“Camp” is a term Susan Sontag coined to describe things that were bad, but fun, because the people doing them looked like they were having fun, like a sketch show or talent show at camp. Xena is certainly a show where people seem to be having fun, but it’s not as bad a camp talent show. In fact, it’s very, very good.