Meaning good / well. Although often used ironically when things aren't well.
After an illness: 'I'm feeling fine and dandy now'
Ironic:
Someone screws up: 'Well that's just fine and dandy that is'
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An idiom of good emotional well being after a long day/night out on the town. This happens when your brain is not able to properly function and does not have the ability to correctly say "fine and dandy".
I am feeling dandy fine after those four margaritias.
I was a mess last night, but despite the fact, I am feeling dandy fine today.
You look dandy fine today my darling, haggered to say the least, but dandy fine.
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