A fuzzy navel is a popular and easy to make mixed drink made from peach schnapps and orange juice. Generally an equal amount of each component is used to concoct it, although quantities may vary. It can also be made with lemonade or a splash of vodka depending on the drinker's taste. By adding 1 or 1 1/2 oz of vodka to the Fuzzy Navel you have what is called a Hairy Navel, the more "hair" referring to the increased strength of alcohol in the drink.
It is unclear who came up with the Fuzzy Navel, but it was one of the first drinks to arise in the new popularity of cocktails and mixed drinks in the 1980s. This fashion was described by New York Times critic William Grimes as "a kind of cult, rallying points for young drinkers in search of fun and not too picky about taste" .
'Fuzzy' in the name refers to the peach, and 'navel' to the orange.