Where "Bluey" Comes From
"Bluey" is one of Australia's most flexible "-ey" nicknames, built by adding the ending to the colour blue — and like many such nicknames, it's ended up meaning several different things depending on context.
It's used for the blue-tongue lizard (named for its bright blue tongue), as an ironic nickname for a red-haired person (since red hair was sometimes called "blue" in older Australian slang), and for a bushman's swag, especially the traditional blue blanket roll once carried by itinerant workers.
"Found a bluey in the garden this morning."
How Aussies Actually Use It
Context decides which "bluey" is meant — spotting one in the garden means the lizard, calling a mate "Bluey" usually means he's a redhead, and packing your bluey means rolling up your swag.
The ironic redhead sense is especially well known and often used as an affectionate nickname, similar to calling a tall person "Shorty."
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