The adjective “downy” means to be fluffy and soft, much like the feathers that are often used to fill blankets and pillows. Frost’s description of snowflakes as soft and comforting, rather than cold, further develops the poem’s tranquil tone.
The adjective “queer” means strange, or differing from what is conventional or expected. The speaker imagines that his horse finds it strange that they would stop in the middle of nowhere, suggesting that the speaker is engaging in unusual or unexpected behavior.