'baldachino' originates from Italian, specifically the word 'baldacchino', where 'Baldacco' (an old Italian name for Baghdad) referred to a type of fine cloth produced there.

'baldachino' changed from Italian 'baldacchino', which itself came via Medieval Latin from references to 'Baldacco' (Baghdad); the term entered English via Italian usage and became 'baldachino' in modern English.

Initially it referred to the luxurious cloth from Baghdad; over time it came to mean a cloth canopy made from such fabric and then more generally an ornamental or architectural canopy, which is the current primary sense.