'demonym' originates from Greek, specifically the words 'dēmos' and 'onoma', where 'dēmos' meant 'people' and 'onoma' meant 'name'.

'demonym' is a Modern English coinage formed by combining the Greek element 'dēmos' (people) with the suffix '-onym' (from Greek 'onoma', name). It did not evolve from an Old or Middle English form but was created in modern linguistic/onomastic usage.

Initially coined to mean 'a name for the people of a place,' the term has retained this meaning; its use expanded within linguistics, geography, and journalism to refer generally to such names.