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Dandy appeared in the late 18th century and may be a shortening of Jack-a-dandy, a 17th-century term for a conceited man. In that expression dandy was probably a pet form of Andrew. The word later broadened from an elegantly dressed man to something excellent or of high quality.
Etymology
Of uncertain origin (late 18th century), possibly a shortening of 'jack-a-dandy' or a pet form of the name Andrew; the adjective sense 'excellent' is later American.