In large skillet, toast coconut over low heat, stirring often, until fragrant and partially browned. Remove from heat and stir in melted butter until well combined. Press into bottom of 8 in. x 8 in. square pan. Refrigerate until firm, at least 15 minutes.
In small microwave-safe bowl, melt Key Lime Pie Candy Melts Candy according to package directions. In large bowl, beat cream cheese with electric mixer until smooth and creamy. Add melted candy; beat until well combined. Spread over coconut; smooth to edges. Refrigerate 2 hours or until set.