The music you're referring to is the music from the title song - "Whatever Happened to Baby Jane", which isn't sung in the movie, but was recorded as a separate track. Bette Davis herself sang it on TV. It's replayed towards the end of the film, on the beach too.
It may sound 'strange' to you, living in 2015, but it was characteristic of early 1960s pop music. It may SEEM out of place in that particular scene where Blanche is throwing the letter out the window, but they DID need some variety in the film......the music couldn't always be ominous, lest the impact of the most dramatic scenes be minimised. That scene is also supposed to be a little comical.
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