American Meaning: The name Grace is an American baby name. In American the meaning of the name Grace is: Grace. The name Grace is an English baby name. In English the meaning of the name Grace is: From the word 'grace', derived from the Latin 'gratia', meaning God's favor. Famous bearer: American actress Grace Kelly became Princess Grace of Monaco. The name Grace is an Irish baby name. In Irish the meaning of the name Grace is: AIrish name Grianne, meaning love.