grade (n.) Look up grade at
1510s, "degree of measurement," from French grade "grade, degree" (16c.), from Latin gradus "step, pace, gait, walk; step on a ladder or stair;" figuratively "a step, stage, degree," from gradi (past participle gressus) "to walk, step, go," from PIE *ghredh- "to walk, go" (cognates: Lithuanian gridiju "to go, wander," Old Church Slavonic gredo "to come," Old Irish in-greinn "he pursues," and second element in congress, progress, etc.). Replaced Middle English gree "step, degree in a series," from Old French grei "step," from Latin gradus.

Meaning "inclination of a road or railroad" is from 1811. Meaning "class of things having the same quality or value" is from 1807; meaning "division of a school curriculum equivalent to one year" is from 1835; that of "letter-mark indicating assessment of a student's work" is from 1886 (earlier used of numerical grades). Grade A "top quality, fit for human consumption" (originally of milk) is from a U.S. system instituted in 1912. To figuratively make the grade "be successful" is from 1912; early examples do not make clear whether the literal grade in mind was one of elevation, quality, or scholarship.
grade (v.) Look up grade at
1650s, "to arrange in grades," from grade (n.). Meaning "to reduce (a road, etc.) to a level or degree of inclination" is from 1835. Meaning "assign a letter mark to" is from 1931. Related: Graded; grading.