In principle it means "joyful, funny", and for these characteristics it began to be used in Hollywood as a euphemism to name homosexual in cinema. In a short time it became popular around the world, as it is not necessarily discriminatory or pejorative (yet, in historically intolerant societies it is preferred not to use it in public to avoid misinterpretations). The etymological origin is very ancient, it comes from the languedoc (Roman Gaul, now south of France) where gai meant "joyful, festive", which in English came first as a cultured and literary voice. In Spanish it differs gay (homosexual) from gay (cheerful, poetic).
1st_ Reduced, almost poetic shape, of gayo. See gaya doctrine, gaya science. 2o_ In this other meaning it would also come from the ancient Occitan, but with a huge turn for several centuries and languages to American English where Hollywood made it popular as a euphemism for "homosexual", just for being someone "joyful, funny". View English/gay . 3o_ In addition it can be a first or last name.