The alley is named after Knut Nilsson Kråka, who in 1608 was promoted to become one of the 48 Elders of the city and in 1615 became a magistrate.
Knut Nilsson Kråka's name is commemorated on the alley, which he rose through the ranks to become an Elder of the city in 1608 and later served as a magistrate in 1615.