This word is Just an insult to throw at someone who is being cantankerous. It's usually followed by a pose with both fists in the air and an angry look on your face. Can also be followed by a "Gnome like" insult.
"I don't want to do that, it sounds stupid, I don't like this, I don't like that, waah waah waah"
"Damnit, you are such a Cantankerous Gnome! You wanna go stand in my yard and hold a candel? Or maybe live in a Tree?"