Everything is a-
ok. Its all good.
Originated by post WW II
US Sailors on liberty in Yokosuka, Japan. The strip right outside the main gate to the US Naval Base was called (and still is) Honcho Dori (means book district street in Japanese). Times were wild and there was no better sailor port in the world at the time. This was bastardized to
Honky Dory by the sailors and it came to mean if you came from
Honky Dory then everything had to be good or 'honky dory'.