A little history about how the humble hanky/hankie/handkerchief came to be so named.
(And we're only dealing with its many names in English - it gets even more complicated once other languages get in the mix !)
In French, a head scarf/band/veil was called a couvre-chef (head coverer).
This became, in English, a kerchief or kerchef - sometimes alternatively called a bandanna , bandana or even a do-rag.
If used to cover the neck, it became a neckerchief/neckerchef.
Similarly, if about the same size and of the same sort of material, but held in the hand instead of being fastened about the head or neck, it became a handkerchief or handkerchef.
This was later shortened to hanky or hankie.
Finally this word more or less disappeared in common usage in North America, replace by tissue or Kleenex - a trademarked brand name in the process of becoming a generic name for this type of material.
Off topic, but interesting indeed is the fact that this little square of cloth is one of the few means of decoration that even the most macho of men would permit for themselves - a touch of bright color around the necks of cowboys, in the shirt or suit upper pockets of business tycoons or around the heads of gang members in the 'Hoods....