Older (pre-1980 or so?) Swedish texts call it vagnretur. Literally a wagon (or carriage; Swedish has only a single word for those things) return. Guess English picked up the word carriage from French at some point and that word ended up being used for carriage return rather that wagon return that would have made as much sense to me, but that might sound weird to native speakers.
Why would wagon return make sense? I don’t see the connection. A carriage is something that holds things for transport. A wagon is specifically the wheeled thing that is pulled along. Typewriters aren’t wheeled transports.