Old English tol "instrument, implement used by a craftsman or laborer, weapon," from Proto-Germanic *tōwalan "implement" (source also of Old Norse tol), from a verb stem represented by Old English tawian "prepare" (see taw). The ending is the instrumental suffix -el (1). Figurative sense of "person used by another for his own ends" is recorded from 1660s. Slang meaning "penis" first recorded 1550s.
"to drive a vehicle," 1812, probably from tool (n.) as if "to manage skillfully." The meaning "to work or shape with a tool" is recorded from 1815; that of "equip (a factory) with machine tools" is from 1927. Related: Tooled; tooling.