1. If something is Über Gnarly it is considered to be gnarlsbad.
2. Originally formed in a suburb of San Diego called "Carlsbad," Gnarlsbad found its way into the lexicon through surf-rats combining the word "gnarly" with the name of their city. Thus, Gnarlsbad.
3. Can also be a combination of "gnarly" and "bad"
Sean: Dude, I'm eating a cake made out of pie.
Jason: Oh, man! That is so Gnarlsbad!
A nickname for Carlsbad CA. The name is derived from Carlsbad being such a "Gnarly" place, full of surf rats, groms, and jocks. Although there are altercations between the groups, they all agree on one thing. Gnarlsbad