The name derives from either the Old Norse word Lundr or the Old Swedish word lunder, both meaning "grove" or "copse". This was likely a reference to the remnants of a large ancient forest that existed in the area at the time the settlement was founded. The town was first documented in 1251 in the Chartulary of Cockersand Abbey, where it was referred to as "de Lund".
Residents are considering changing its name to tackle vandals who alter signs in the village. Roadsigns in Lunt have been repeatedly targeted by vandals who change the "L" to a "C". A similar situation has arisen in the Austrian town of Fucking, where the town sign has been repeatedly stolen. However, as in Fucking, certain residents have been reluctant towards a name change, perceiving it as an erosion of the town's heritage. A proposed revision of the name is Launt, which would be pronounced in the same way.