It is of Old French origin, and the meaning of Chanel is "pipe". From a French occupational name and surname for pipe fitters and manufacturers. Contemporary usage may be due to the influence of the legendary fashion designer Gabrielle 'Coco' Chanel (1883-1971), and a number of famous perfumes.
 
How popular is Chanel?Chanel is a very prominent first name for females (#1432 out of 4276, Top 33%) and a slightly less prominent last name for both adults and children (#112967 out of 150436, Top 75%). (2000 U.S. DEMOGRAPHICS)Chanel was first listed in 1960-1969 and reached its top rank of #382 in the U.S. in the year 1991, and is currently at #769. (2018 U.S. SSA RECORDS)