There is, in terminal usage and programming lingo, "raw terminal mode" and "cooked mode" ; not seeing the original discussion linked, I do wonder if "cooked" was used in both meanings of the word and not just 1.
It's clearly in that sense that it's called "cooked". Which other meaning do you think applies?
The README of the project itself explains; "cooked" allocates the pty and interprets dynamically whether the other side is a command-line reader or full-screen program. See: https://github.com/vodik/cooked
Given that we're talking about terminal emulation, I'd be more surprised if "cooked" wasn't a reference to cooked mode