Just read this on the 'Wings Over the Rockies Air Museum' FB page. Short bio of Kelly Johnson. Where the name 'Skunk Works' came from; didn't know this: "In 1956 he (Kelly Johnson) became Vice President of Research and Development and two years later became the Vice President of Advanced Development Projects (ADP). The first ADP offices were close to a plastics factory, and the stench from the plastic made life at the offices unbearable. One of the engineers began answering the phone with “Lockheed Skunk Works.” The term quickly caught on, and the Lockheed ADP department is still known by the name today; although, the term is now widely used to describe all secret research and development projects."
I worked there in the 80's and 90's. The accepted lore (at least within the company) was that the name originated with the Lil' Abner comic strip of the time (early 40's). ADP was always headquartered in Building 311 right next to Burbank airport... Plant B6 if I recall. I can tell you we followed Kelly's 14 rules pretty well - and it was a great culture to work in.