Waxholme means "village where wax (from bees) is produced. The first element of the name is Old Englishweax "wax".
Despite the place-name ending in "-holme" (which is normally from Old Norseholmr "island, water-meadow"), it is not from this word. Instead the ending is Old Englishham "homestead", rather than the similar Old Englishhamm "river-meadow, bend in river", despite the village's proximity to the River Humber. The name was recorded as Wexnem in 1162.