Katy \k(a)-ty\ as a girl's name is a variant of Catherine (Greek), Katherine (Greek) and Katie, and the meaning of Katy is "pure". See also Cady and Kady.
The baby name Katy sounds like Katya, Kati, Kathy, Katey, Kate, Kata, Kat, Kaity, Caty and Katt. Other similar baby names are Kaly, Kacy, Kasy, Kay and Kary.