cheerful, bright, sagacious
恔 centers on a bright, cheerful state of mind, often linked to clarity and wisdom. The sagacious sense extends this as a clear, insightful intelligence.
恔 combines 忄 (heart/mind) with 交, which likely contributes a phonetic element. The exact historical development is uncertain, but the structure suggests a mind-related quality.
The heart radical 忄 beside 交 suggests a mind that is bright and cheerful, like an active, clear exchange of thoughts.
For キョウ, imagine a cheerful person in Kyoto (京都, きょうと) whose bright mind makes everyone smile: Kyoto -> キョウ.