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Lagoa dos Gatos was officially recognised as a populational gathering in 1832 and became a village in 1839. In 1928 it was renamed Frei Caneca, until 1938, when it reverted to its original name. Local legends state that the name, which literally means "Cat's Lagoon", was used by its first explorers after sighting a few margays at a small lagoon.
Los Gatos is Spanish for "The Cats". [10] The name derives from the 1839 Alta California land grant that encompassed the area, which was called La Rinconada de Los Gatos ("The Corner of the Cats"), where the cats refers to the cougars (mountain lions) and bobcats that are indigenous to the foothills in which the town is located.