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The person chuckles when he hears something - a joke or a funny anecdote.

Is the sentence in the question correct for such a setting or is there a better way to frame it? My main concern is the "broke into a chuckle" part. Is it okay to write it this way or is it odd?

3

The phrase "broke into a chuckle" is perfectly valid, and not all that uncommon. Whether to use it is a matter of style, it gives a particular tone to the passage.

2

Not odd at all! It's quite common. When you break into something, you suddenly start doing it. One can break into song (start singing), break into a run (start running).

A similar expression burst into something (whether into laughter, or into tears) has the same meaning and is equally commonly used.

Here is a list of the most popular things one can break into.

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(Excluding the last two: breaking into pieces, and breaking [=getting] into a house)

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