Eady Family History

English: from the Middle English and Scots personal name Edy usually shortened forms of the female names Edive (Old English Ēadgifu from ēad ‘prosperity’ + gifu ‘gift’) and Edith (Old English Ēadgȳth from ēad ‘prosperity’ + gȳth ‘battle’) which became confused with each other.

Edith remained in use as a personal name into the 14th century and beyond and thus is the more likely source. Alternatively Edy could sometimes represent Old English Ēadwīg (‘prosperity’ + ‘war’) or a pet form (with the -y suffix) of any of several male personal names with Ed- particularly Edmund which was much used in East Anglia throughout the medieval period.