The city of Sydney owes its name to British colonial history, specifically to Captain Arthur Phillip, the first governor of New South Wales. In 1788, Phillip named the cove where the first British settlement was established "Sydney Cove" in honor of Thomas Townshend, 1st Viscount Sydney, the British Home Secretary at the time. Prior to European settlement, the cove was known as Warrane by the Aboriginal Gadigal people, the traditional custodians of the area. The name "Sydney" was initially considered for the settlement in 1788, though there were other potential names like Albion, which were never officially adopted.

The Gadigal clan, whose territory spans the southern shore of Port Jackson, from South Head to Darling Harbour, have long called this region "Gadi" or "Cadi." This area is one of many within Greater Sydney, which covers the traditional lands of 28 Aboriginal clans. The naming practices of these clans often involved adding the suffix "-gal" to a word, referring to their territory, landmarks, or food sources. Sydney's rich toponymic history reflects both its Aboriginal heritage and its colonial past, contributing to the diverse cultural landscape of the city.