The municipality (originally the parish) is named after the old Vegusdal farm () since the first Vegusdal Church was built there. The first element is derived from the old male name, Veikolfr.
The municipality (originally the parish) is named after the old Vegusdal farm () due to the establishment of the first Vegusdal Church there. The initial component originates from the old male name, Veikolfr.