Origin of the name Gracie: 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.
Gracie is originally a Scottish surname, an anglicisation of the Scottish Gaelic word greusaich (or griasaich), originally meaning an embroiderer and later a shoemaker. It is also a feminine given name, usually a diminutive form of Grace.