Police received a call at around 2.43pm that a man was making threats to other residents and that he had a knife in possession.
A spokesperson for North Yorkshire Police said:
A cordon was put in place around the property, including local road closures, to protect members of the public while officers dealt with the incident.
It was brought to a conclusion at around 4.15pm when the man was arrested and taken into police custody. The road has now been reopened.
A second man was also arrested on suspicion obstructing the police. Although not part of the original incident, he caused disruption inside the cordon while officers dealt with the incident. He is also in police custody at this time.
Incident number 12200164112