I wanna ask you one question

"If I had some nuts, hangin on the walls, what did I have honey?"
I said, "Darling you'd have some walnuts."
She said, "Well.. daddy if I had some nuts
on my chest, would those be chestnuts?"
I said, "Hell yes!"
She said, "Well daddy if I had nuts under my chin
would those be chin-nuts?"
I said, "Hell no bitch you'd have a dick in your mouth!"

i don't understand, his daughter called him "honey"?