You are correct in that it varies greatly amongst tribes Simo. Skunks have appeared in various lore of different tribes in all different sizes, down to realistically pocket sized spotted skunks up to monstrous striped skunks that were said to knock over trees in a charge whose spray was deadly instead of just smelling foul.
When I asked what the reason behind why I was given the name, I was told that skunks had powerful medicine all of their own because of their unique skills. I was also told that I am like a skunk, an animal which no one messes with. Not because I appear deadly, but that I can make one's life far worse than that if desired. Which is fair, as a medic I don't desire to harm people, but should the need arise I am more than capable of defending myself.
Skunk oil is used in the perfume industry as a binding and carrying agent for other scents. Not sure of any uses for it in traditional native lore but I can't claim to know anything close to all of that.