The origin of the name is somewhat disputed. Most claims date back to an inn and tavern located at the Corner during the late nineteenth century. The most frequently-cited legend goes that the innkeeper had a habit of singing "Yankee Doodle", which sounded more like "Punkey Doodle" to the tavern guests. Other stories link the name to an old Victorian word for frittering away time, or a nickname given to a lazy pumpkin farmer by his irritated wife. "Corners" refers to both the geographical feature of the intersecting roads as well as the convergence of Waterloo, Oxford, and Perth regional boundaries.
The most prominent moment in Punkeydoodles Corners history was Canada Day 1982, when the Right Honourable Joe Clark was present for festivities. A post office was opened for one day to issue commemorative stamps.
While common spelling and punctuation vary, the official name is "Punkeydoodles Corners".
The name of the hamlet frequently appears in lists of humorous place names.