in Pokemon episode "yes, in Dee Dee its Dawn" it explains that when dawn was little she was taking care of a plusle and minum and they were running around and she picked them up and they let out a thunderbolt and dawns hair exploded and got all sparkly so Kenny said "hey Dawn, your hair is all sparkly like a diamond" and so he made up the nickname "dd" for Diamond Dandruff
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Once Kenny,Liona and Dawn were given the job of pokemon caretakers in a pokemon center and dawn was electrified by a duo of plusle and minun thus her hair became pointed and started to shine Kenny called this 'Diamond Dandruff' which in short he calls 'DD'
It was dawns nickname when she was little as you can see only her friends that she knew for a long time call her it
Only Kenny calls her that, because it's supposed to be an insult. (It stands for Devilish Demon.) Also 'dawn' means night, or extremely early in the morning. People say that dawn is a time the devil likes, and DD also means "Devil's Dwelling." it might not be that because in the episode Hot Springing A Leak, her best childhood friend, Leona, calls her it. Ash says to Leona, "Why do all of Dawn's friends call her DD?" and Leona says, "You don't know? Well, you see--" and she is cut off because Dawn dunks her under the water before she can say anything else.
her first and last name both start with d dawn d.But that can't be it, because Dawn didn't want Ash & Brock to know why in the episode "Hot Springing a Leak".Yep. If Dawn was called DeeDee because of her name and surname, or Ash and Brock would know by now!
it was revealed that the reason for the name was due to her hair glittering after being shocked by the class pets in her kindergarten, Plusle and Minun, making it appear that she had Diamond Dandruff. Due to the trauma from being teased by her entire class with the nickname, she is very reluctant to let others know the origin of the name.