“There's some kind of funky odor in here.”
You open your refrigerator to look for a snack. It smells bad. You comment on it to your roommate.
There's some kind of funky odor in here.
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It's common to use "there is ___" or "there are ___" when you're describing a scene or situation:
When you go in his office, there are books scattered all around.
You could also describe a scene this way:
When you go in his office, books are scattered all around.
But that's not as common, because it doesn't communicate the sense that you're giving a description. It sounds more like you're stating a fact. "Facts" are pieces of information like this:
Math textbooks cost a lot of money.
But a "description" has a slightly different feeling. It kind of invites the listener to imagine that they are in the situation you're describing:
There was a math textbook at the campus bookstore that cost a hundred and ninety dollars!
So when you're describing a scene, it's more common to use "There is", "There are", "There were", etc.:
There were books scattered all over.
The phrase "some kind of ___" can be used when you don't know exactly what you're talking about or you don't want to specify:
What's this? Some kind of stew?
A "funky" smell or odor is the smell of something that's a little bit rotten, moldy, sweaty, etc. You use it like this:
There's a funky smell in here.
There's something funky in that closet.
Other bad smells like the smell of chemicals are not usually called "funky".
"Funky" is a slang word, so you use it in casual situations.