Quiz: Remember the definition of mal de mer?
1784, "old, musty," in reference to cheeses, then "repulsive," from funk (n.2) + -y (2). It began to develop an approving sense in jazz slang c.1900, probably on the notion of "earthy, strong, deeply felt." Funky also was used early 20c. by white writers in reference to body odor allegedly peculiar to blacks. The word reached wider popularity c.1954 (e.g. definition in "Time" magazine, Nov. 8, 1954) and in the 1960s acquired a broad slang sense of "fine, stylish, excellent."
Said of something that functions, but in a slightly strange, klugey way. It does the job and would be difficult to change, so its obvious non-optimality is left alone. Often used to describe interfaces. The more bugs something has that nobody has bothered to fix because workarounds are easier, the funkier it is. TECO and UUCP are funky. The Intel i860's exception handling is extraordinarily funky. Most standards acquire funkiness as they age. "The new mailer is installed, but is still somewhat funky; if it bounces your mail for no reason, try resubmitting it." "This UART is pretty funky. The data ready line is active-high in interrupt mode and active-low in DMA mode."