Q: Hood dude とはどういう意味ですか?
A: A man from the hood.

The hood = inner city, economically impoverished area

Native speakers often think "hood" is the same as "ghetto" but they are not the same. "Ghetto" is negative, while "hood" is not. "Hood" is often a fond term used by someone from that area.
Q: The Hood とはどういう意味ですか?
A: A ghetto neighborhood. Or a community where any gang activity exists.


Q: What does "Hood" and "Ghetto" mean exactly? Why they're so controversial?
A: Hood and ghetto refer to underdeveloped/impoverished neighborhoods and sometimes can be dangerous to live in. Usually with more people of color living in these areas (not always). I wouldn't say they're controversial.
Q: Hood ornament stolen while I went grocery store.
While I was shopping at the grocery store, the hood ornaments was stolen

Which is better? この表現は自然ですか?
A: #2 is preferred however the use of the phrase "the hood ornament" makes the ownership of the car ambiguous. If the car belongs to you, or your friend, the offense becomes personal.

"While I was in the store, (my/our) hood ornament was stolen."

In America it is common for people to be very attached to their vehicles. Often, even rental cars may be referred to as "my/our car" despite being temporarily borrowed.