Your friend tells you about a dream he had last night. It was really strange and frightening. This is your response.
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In casual speech, English speakers sometimes start a sentence with "Sounds" instead of "That sounds" or "It sounds":
Sounds like a good idea.
We also do this with "Seems":
You should avoid doing this in formal speaking or writing.
"Freaky" means "strange" or "weird". Some things that can be described as "freaky" include:
a freaky tattoo
a freaky fashion trend
a freaky scene (in a movie)
"Freaky can also mean "sexually wild".