Origin of the name Grace: Inspired by grace (eloquence or beauty of form, kindness, mercy, favor), which is derived from the Latin gratia (favor, thanks). The name was made popular by 17th-century Puritans, who bestowed it in reference to God's favor and love toward mankind. From A World of Baby Names by Teresa Norman.rigin of the name Grace: Inspired by grace (eloquence or beauty of form, kindness, mercy, favor), which is derived from the Latin gratia (favor, thanks). The name was made popular by 17th-century Puritans, who bestowed it in reference to God's favor and love toward mankind. From A World of Baby Names by Teresa Norman.