From The Collaborative International Dictionary of English v.0.48:
Flaky \Flak"y\, a. 1. Consisting of flakes or of small, loose masses; lying, or cleaving off, in flakes or layers; flakelike. [1913 Webster]
What showers of mortal hail, what flaky fires! --Watts. [1913 Webster]
A flaky weight of winter's purest snows. --Wordsworth. [1913 Webster]
2. prone to strange or erratic behavior; -- of persons. [PJC]
3. odd, unpredictable or unconventional; offbeat; whacky; -- of behavior. [PJC]
4. unpredictable, erratic, or unreliable; -- of machinery, especially electronic devices. "a flaky computer board." [PJC]