'fur-seal' originates from English, a compound of 'fur' and 'seal'. 'fur' comes from Old English 'fūr' (from Proto-Germanic *fūraz) meaning 'hair, pelt', and 'seal' comes from Old English 'seolh' (from Proto-Germanic *selk-) meaning the marine mammal 'seal'.

'fur-seal' developed as a compound term in modern English usage (notably in the 18th and 19th centuries) to describe seals valued for their fur; the parts 'fur' and 'seal' themselves derive from Old English forms 'fūr' and 'seolh' and earlier Germanic roots, and through Middle English the modern compound was formed.

Initially it was used specifically for seals hunted for their valuable pelts ('a seal bearing valuable fur'), but over time it became the standard name for several species of eared seals with dense underfur ('members of Otariidae known as fur seals').