The name Chanel is a French baby name. In French the meaning of the name Chanel is: Canal; channel. The popular perfume Chanel. American Meaning: The name Chanel is an American baby name.In American the meaning of the name Chanel is: Canal; channel.n French the meaning of the name Chanel is: Canal; channel. The popular perfume Chanel. American Meaning: The name Chanel is an American baby name. In American the meaning of the name Chanel is: Canal; channel.