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Last name origins & meanings:

1. English: from a Germanic personal name Walo, either a byname meaning ‘foreigner’ (see Wallace), or else a short form of the various compound names with this first element.
2. English: nickname for a well-liked person, from Middle English wale ‘good’, ‘excellent’ (originally meaning ‘choice’).
3. English: topographic name for someone who lived near an embankment, Middle English wale (Old English walu).