'gamma-hydroxybutyraldehyde' originates from systematic chemical nomenclature (Modern/New Latin and International nomenclature), combining the Greek-derived locant 'gamma' (from Greek 'γάμμα' meaning 'third'), the prefix 'hydroxy' (from 'hydroxyl', hydrogen + oxygen), and 'butyraldehyde' (from 'butyr-' ultimately via Latin 'butyrum' and Greek 'boutyron' meaning 'butter' + 'aldehyde').

'gamma-hydroxybutyraldehyde' was formed by combining the established name 'butyraldehyde' (an aldehyde of a four-carbon chain) with the substituent prefix 'hydroxy' and the positional descriptor 'gamma' to indicate a hydroxyl on the gamma carbon; this systematic assembly follows IUPAC-style naming conventions.

The term has been—and remains—primarily descriptive of molecular structure: initially and now it denotes a butyraldehyde derivative with a hydroxyl on the gamma carbon (4-hydroxybutanal).