Extended sense of "nonhistorical or mythical story," with or without saints, wonders, and miracles is first recorded late 14c. Meaning "writing or inscription" (especially on a coin or medal) is from 1610s; on a map, illustration, etc., from 1903. To be a legend in (one's) own time is from 1958.
Proto-Indo-European root meaning "to collect, gather," with derivatives meaning "to speak" on the notion of "to gather words, to pick out words."
It forms all or part of: alexia; analects; analogous; analogue; analogy; anthology; apologetic; apologue; apology; catalogue; coil; colleague; collect; college; collegial; Decalogue; delegate; dialect; dialogue; diligence; doxology; dyslexia; eclectic; eclogue; elect; election; epilogue; hapax legomenon; homologous; horology; ideologue; idiolect; intelligence; lectern; lectio difficilior; lection; lector; lecture; leech (n.2) "physician;" legacy; legal; legate; legend; legible; legion; legislator; legitimate; lesson; lexicon; ligneous; ligni-; logarithm; logic; logistic; logo-; logogriph; logopoeia; Logos; -logue; -logy; loyal; monologue; neglect; neologism; philology; privilege; prolegomenon; prologue; relegate; sacrilege; select; syllogism; tautology; trilogy.
It is the hypothetical source of/evidence for its existence is provided by: Greek legein "to say, tell, speak, declare; to count," originally, in Homer, "to pick out, select, collect, enumerate;" lexis "speech, diction;" logos "word, speech, thought, account;" Latin legere "to gather, choose, pluck; read," lignum "wood, firewood," literally "that which is gathered," legare "to depute, commission, charge," lex "law" (perhaps "collection of rules"); Albanian mb-ledh "to collect, harvest;" Gothic lisan "to collect, harvest," Lithuanian lesti "to pick, eat picking;" Hittite less-zi "to pick, gather."
early 15c., "exposition of myths, the investigation and interpretation of myths," from Late Latin mythologia, from Greek mythologia "legendary lore, a telling of mythic legends; a legend, story, tale," from mythos "myth" (a word of unknown origin; see myth) + -logia (see -logy "study"). Meaning "a body or system of myths" is recorded by 1781.