Everything is just fine. In World War I, Hungarian Dorothy was a prostitute who offered free services to the soldiers on the front lines, and was fondly remembered as Hunky Dory. “How’s it going?” “Hunky dory!”
In satisfactory condition; very good; all right.
Also the title of David Bowie's 1971 album, which contained classic Bowie songs such as "Changes", "Life on Mars?" and "Andy Warhol".