They are so-named because of their popularity in Bermuda, a British Overseas Territory, where they are considered appropriate business attire for men when made of suit-like material and worn with knee-length socks, a dress shirt, tie, and blazer. In addition, many businesses in the West that have a business casual policy similarly allow this kind of clothing in appropriate weather. They are available in a variety of colors, including many pastel shades as well as darker shades.
Bermuda shorts originated with the British Army for wear in tropical and desert climates, and they are still worn by the Royal Navy. It is believed that the style was adapted for business wear in Bermuda, emulating the British military forces stationed there in the early twentieth century.
True Bermuda shorts are not to be confused with "clam diggers" or "capri pants" extending below the knee. Cargo shorts may be a similar length, but are typically baggy or less "tailored" than Bermuda shorts.