It's a funny sort of fence (2-2)
I believe the answer is:
ha-ha
This clue could be a double definition.
'it's a funny' is the first definition.
'sort of fence' is the second definition.
'ha-ha' can be an answer for 'fence' (I have seen 'Sunken fence' mean 'ha-ha' so perhaps 'fence' could also mean 'ha-ha'). I'm not sure about the 'sort of' bit.
Can you help me to learn more?
(Other definitions for ha-ha that I've seen before include "Ditch with wall in it - sounds merry" , "Feature of posh garden" , "Hidden ditch" , "Kind of ditch with wall in it" , "Loud laugh" .)