the lore is simple, you are a black man in a racist society, in Happy Day you are at home, and you fancy some fried chicken, although something is not right in your house, someone has broken in without you noticing, the main endings are to take the knife and stab whatever is in your house and run away or get caught by the police and abuse their authority.
You can now see the lore of Happy Day 2, which will help you understand Happy Day