It is well-known that the ordinary (singular) cohomology of orbifolds doesn't behave well for many purposes. Better approaches include the Chen-Ruan cohomology, which has an associative product structure closely tied with orbifold Gromov-Witten theory; another common approach is the Borel construction, replacing quotients by homotopy quotients.
Any orbifold has a natural stratification induced from the isomorphism type of the stabilizers. This stratification should allow one to talk about intersection homology on orbifolds. It seems that this is an area that is not fully explored. Is there any study in this direction? What kind of expectations should one have? I'm happy to restrict to algebraic orbifolds.