The given name Gracey is a variant of the English name Grace, which has its origins in the Latin word "gratia" meaning "grace", "favor", or "thanks". The name was initially used as a virtue name, referring to the theological concept of divine grace.

In the early Christian era, the name Grace was adopted as a given name, symbolizing the grace of God bestowed upon the bearer. It gained popularity throughout Europe during the Middle Ages, particularly in regions where Latin-based languages were spoken.

One of the earliest recorded instances of the name Grace dates back to the 13th century, when it was mentioned in the English literary work "Cursor Mundi" written around 1300. The name was also found in various historical records and church documents from that period.

Throughout history, several notable individuals have borne the name Grace or its variants, including Grace Kelly (1929-1982), the American actress who became Princess of Monaco, and Grace Hopper (1906-1992), a pioneering computer scientist and rear admiral in the United States Navy.

In the 16th century, the name Grace appeared in William Shakespeare's play "The Merchant of Venice", where one of the characters is named Gratiano, a variant of the Italian form of the name.

Another prominent figure was Grace Darling (1815-1842), a Victorian-era English lighthouse keeper's daughter who became renowned for her participation in the rescue of survivors from the shipwrecked Forfarshire in 1838.

In the 20th century, Grace Coolidge (1879-1957) was the wife of the 30th President of the United States, Calvin Coolidge, and served as the First Lady from 1923 to 1929.

The variant spelling Gracey likely emerged as a diminutive or pet form of the name Grace, possibly originating in English-speaking regions where such variations were common. While less common than the traditional spelling, Gracey has been used as a given name throughout history, often as a way to distinguish the bearer from others named Grace.