Etymology
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sandy (adj.)

Middle English sandie, "consisting mainly of sand, abounding in sand," from Old English sandig "of the nature of sand;" see sand (n.) + -y (2). Meaning "of yellowish-red hue" (in reference to hair) is from 1520s.

Sandy (n.)

late 15c. as a nickname for Alexander; it is a diminutive or familiar variant of the nickname Saunder, which is preserved in surnames, as in Clerk Saunders of the old Border ballad. As the typical name for a Scotsman (especially a Lowlander) from 1785; in that use also punning on the hair-color sense of sandy (adj.). Also Sawney.

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Definitions of sandy

sandy (adj.)
of hair color; pale yellowish to yellowish brown;
Synonyms: flaxen
sandy (adj.)
resembling or containing or abounding in sand; or growing in sandy areas;
Synonyms: arenaceous / sandlike
From wordnet.princeton.edu