Functional has a bad name because it was devised and is universally used by doctors to mean behavioural/psychological despite the fact that they deny this in writings they know may be read by patients.
I think the term "functional" was useful in the sense that it also means "having to do with function," so on its face it comes across as neutral and would be neutral if that's how it were used by clinicians. As Jo says, that's not how it's generally understood. "Functional" has more or less replaced "MUS." So the main "functional" syndromes are said to be IBS, ME (they often still prefer CFS), and fibromyalgia. Any other symptoms not parts of syndromes are "functional" if they're "uexplained" by which is meant "unexplainable in perpetuity because it's 'functional.'"
FND is somewhat different and more specific, because they have given it actual diagnostic criteria. It is the current name for what was conversion disorder. And conversion disorder in 20th century generally fell into three categories--motor, sensory, and seizures. Leg paralysis, "hysterical" blindness/deafness, and "psychogenic non-epileptic seizures," for example. In the 2010 Stone et al study of neurology diagnoses, these were the conversion disorder categories and they constituted 5.5% of visits to the neurology clinics they examined. (That doesn't mean the diagnoses were accurate!!--that's just what the diagnoses were.)
In 2013, the DSM added "functional neurological symptom disorder" to the conversion disorder category, and changed the criteria. It no longer required a psychological trauma to be identified as the cause, but there had to be a positive clinical "rule-in" sign indicating a mismatch between neurological disease and the symptoms. Since then, FND has been in expansion mode, with the experts laying claim to cases of "dizziness" (many likely from orthostatic intolerance of some kind) and cognitive impairment as sub-groups of FND. Given the pandemic, FND is in a state of "diagnosis creep" but the creep has been quite rapid.
ADDED: This is all as I understand it. I don't pretend to be an expert here.