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The title is used by Ayurvedic physicians and their descendants. It is not a caste name, but, was more prevalent among the traditional ayurvedic physicians of Kaniyar or Ganaka community in the Travancore region of Kerala.
For the last two centuries, this title has been in use among many other communities too, including Ezhava of Hindus and some families of Christians in Kerala. The surnames is therefore, has its root to a profession of practicing ayurvedic medicine.
Similar occupational surnames like Vaidhya, Vaid, Vaidhh, Vaidh, Vaidya, Baid, Baidya are found in persons of other regions of India. The name Vaidyar is different from Vaadhyar of Karnataka state, which is a different community of people.