Quote from the PM at the time:
Australians will be deeply appreciative of his Majesty's action in appointing a member of the Royal Family to be Governor-General of Australia. All in the country will look forward with affectionate and loyal interest to the arrival again in Australia of His Royal Highness.8
And from a newspaper at the time:
'In acceding to the Curtin Government's request that the Duke might be appointed to Canberra, his Majesty at once gives immense gratification to the peoples of Australia and reaffirms the supreme importance of the Crown as the centre and symbol of Empire unity.'
Not popular all around. There were those who thought that they needed to have an Australian in the position. The second lat GG before him was Australian born. Henry would be replaced by an Ausie though he wasnt the last British born GG of Australia.
It was actually meant to be George who was GG of Australia, but he died in his crash before he was sent. Henry was sent in his stead.
It wasnt unheard of course for senior royals to be named. In Canada we had Arthur, Duke of Connaught. We also had his brother in law the Marquis of Lorne and his wife Prince Louise (my province is named for her).