Word Origins - 'Hunky Dory'

'Huncho-dori was a major street in Yokohama that was frequented by American sailors on leave during W.W.I. To be in Huncho-dori was to be enjoying leisure activities, and having a good time.

Alternatively, the archaic English word "hunk" meant "goal" and is probably derived from the Dutch "honk" also meaning "goal". To have reached one's goal is to be satisfied and happy.'

Other sources of origin here.