The name Terry is an English diminutive form derived from the medieval French name Thierry. Thierry itself originated from the Germanic Theodoric, which was composed of the elements theud meaning "people" and ric meaning "power" or "ruler." The name was popular among the Franks and gained widespread use throughout Europe during the Middle Ages.

Terry first emerged as a distinct name in the 12th century, with early recorded examples found in English and French texts. One of the earliest known references is in the Pipe Rolls of Henry II, where a Terric de Walintun is mentioned in 1166.

The name gained particular prominence in the 14th century, when Sir Terry de la Vache (c. 1305-1367) served as a distinguished knight and military commander in the Hundred Years' War. He fought alongside Edward, the Black Prince, and was present at the Battle of Crécy in 1346.

Another notable bearer of the name was Terry Tiler (c. 1390-1449), an English rebel leader during the Jack Cade Rebellion of 1450. He led a peasant uprising against the corruption and misrule of the English government, though the rebellion was ultimately crushed.

In the 16th century, Terry Alford (c. 1515-1582) was an English Catholic martyr who was executed for his faith during the reign of Elizabeth I. He was canonized by the Catholic Church in 1970.

During the English Civil War of the 17th century, Sir Terry O'Neile (1612-1667) was an Irish soldier who fought for the Royalist cause under King Charles I. He was later appointed Governor of Carrickfergus Castle in recognition of his military service.

The name continued to be used throughout the centuries, with various other historical figures bearing it. These include Terry Frost (1915-2003), a British abstract artist associated with the St Ives School, and Terry Gilliam (born 1940), an American-born British filmmaker and member of the Monty Python comedy troupe.