It is thought to have been named after Kyle Farm which occupied most of the land required for the lake, which in turn was named after the Kyle district in Scotland from which the pioneer of the Lowveld, Tom Murray MacDougall came originally.
The lake's name reflects its connection to a farm named Kyle Farm, located on land that was originally part of the Kyle district in Scotland. This connection is further emphasized by the fact that Tom Murray MacDougall, who established the Lowveld region, hailed from this area.