"disk dump" is another common (but wrong) guess.
One explanation that left a deep impression on me is[1]:
it stands for 'Copy and Convert' and was renamed to `dd` only because `cc` was reserved for the C compiler!
[1]: https://unix.stackexchange.com/a/6835/192313
I always read it as “[disk|data] destroyer”, because that’s what it’ll do if you’re not careful.