Etymology
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caramel (n.)

1725, "burnt sugar," from French caramel "burnt sugar" (17c.), from Old Spanish caramel (modern caramelo), which is of uncertain origin, probably ultimately from Medieval Latin cannamellis, which is traditionally from Latin canna (see cane (n.)) + mellis, genitive of mel "honey" (from PIE root *melit- "honey"). But some give the Medieval Latin word an Arabic origin, or trace it to Latin calamus "reed, cane."

The word was being used by 1884 of a dark-colored creamy candy and by 1909 as a color-name.

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Definitions of caramel
1
caramel (n.)
firm chewy candy made from caramelized sugar and butter and milk;
caramel (n.)
burnt sugar; used to color and flavor food;
Synonyms: caramelized sugar
caramel (n.)
a medium to dark tan color;
Synonyms: yellowish brown / raw sienna / buff / caramel brown
2
caramel (adj.)
having the color of caramel; of a moderate yellow-brown;
Synonyms: caramel brown
From wordnet.princeton.edu