The name Freddy is a diminutive or nickname form derived from the Germanic name Frederick. Frederick itself is composed of the elements "frid" meaning peace and "ric" meaning ruler or power. The name can be traced back to the Old High German name "Friderich" from around the 8th century AD.

The name Frederick first appeared in the Frankish Empire during the Carolingian dynasty. One of the earliest recorded instances is the 8th century Duke Frederick of Upper Lorraine, a grandson of Charlemagne. The name grew in popularity across medieval Europe, particularly in Germany, France, and England.

One of the most famous bearers of the name was Frederick I, also known as Frederick Barbarossa, who ruled as King of Germany and Holy Roman Emperor from 1155 to 1190. He was a prominent figure during the Crusades and expanded the power of the Holy Roman Empire.

Another notable Frederick was Frederick II, known as Frederick the Great, who ruled as King of Prussia from 1740 to 1786. He was a skilled military leader and an influential monarch during the Enlightenment period, known for his patronage of the arts and sciences.

In England, Frederick Louis, Prince of Wales, the eldest son of King George II, was instrumental in introducing the name to Britain in the early 18th century. His grandson would later become King Frederick William III of Prussia.

Other famous historical figures named Frederick include Frederick Douglass, the renowned American abolitionist and social reformer (1818-1895), and Frederick Chopin, the celebrated Polish composer and pianist (1810-1849).

The diminutive form Freddy emerged as a common nickname, particularly in English-speaking countries. It has been used by various individuals throughout history, such as Freddy Krueger, the fictional villain from the "A Nightmare on Elm Street" film series, and Freddy Mercury, the legendary lead singer of the rock band Queen (1946-1991).