The most common and most likely answer to this crossword clue is the 3 plus 7 letter word RIB TICKLER
I've seen this crossword clue in The Guardian
R
I
B
T
I
C
K
L
E
R
Buddy explains!
The straight part
We know that "Funny story" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case funny story = rib tickler.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does RIB TICKLER mean?
RIB TICKLER noun- A humorous joke.