It is called the ‘funny bone’ because of the feeling you get if you bump it on a hard object. The funny feeling is caused by compression of the ulnar nerve, which runs down the outside of the humerus, continues down the ulna, and supplies feeling to the fourth and fifth fingers of your hand. read more
In the elbow. It is the end of the "humerus", which is where the phrase "funny bone" comes from, because of the similarity to "humorous". read more
But your funny bone isn't actually a bone at all. Running down the inside part of your elbow is a nerve called the ulnar nerve. The ulnar nerve lets your brain know about feelings in your fourth and fifth fingers. read more