linguistic:paraphrasing
History of the name

The term dynamic programming was originally used in the 1940s by Richard Bellman to describe the process of solving problems where one needs to find the best decisions one after another. By 1953, he refined this to the modern meaning, referring specifically to nesting smaller decision problems inside larger decisions, and the field was thereafter recognized by the IEEE as a systems analysis and engineering topic. Bellman's contribution is remembered in the name of the Bellman equation, a central result of dynamic programming which restates an optimization problem in recursive form.

Bellman explains the reasoning behind the term dynamic programming in his autobiography, Eye of the Hurricane: An Autobiography:

I spent the Fall quarter (of 1950) at RAND. My first task was to find a name for multistage decision processes. An interesting question is, "Where did the name, dynamic programming, come from?" The 1950s were not good years for mathematical research. We had a very interesting gentleman in Washington named Wilson. He was Secretary of Defense, and he actually had a pathological fear and hatred of the word "research". I'm not using the term lightly; I'm using it precisely. His face would suffuse, he would turn red, and he would get violent if people used the term research in his presence. You can imagine how he felt, then, about the term mathematical. The RAND Corporation was employed by the Air Force, and the Air Force had Wilson as its boss, essentially. Hence, I felt I had to do something to shield Wilson and the Air Force from the fact that I was really doing mathematics inside the RAND Corporation. What title, what name, could I choose? In the first place I was interested in planning, in decision making, in thinking. But planning, is not a good word for various reasons. I decided therefore to use the word "programming". I wanted to get across the idea that this was dynamic, this was multistage, this was time-varying. I thought, let's kill two birds with one stone. Let's take a word that has an absolutely precise meaning, namely dynamic, in the classical physical sense. It also has a very interesting property as an adjective, and that is it's impossible to use the word dynamic in a pejorative sense. Try thinking of some combination that will possibly give it a pejorative meaning. It's impossible. Thus, I thought dynamic programming was a good name. It was something not even a Congressman could object to. So I used it as an umbrella for my activities.

The word dynamic was chosen by Bellman to capture the time-varying aspect of the problems, and because it sounded impressive. The word programming referred to the use of the method to find an optimal program, in the sense of a military schedule for training or logistics. This usage is the same as that in the phrases linear programming and mathematical programming, a synonym for mathematical optimization.

The above explanation of the origin of the term may be inaccurate: According to Russell and Norvig, the above story "cannot be strictly true, because his first paper using the term (Bellman, 1952) appeared before Wilson became Secretary of Defense in 1953." Also, Harold J. Kushner stated in a speech that, "On the other hand, when I asked the same question, he replied that he was trying to upstage Dantzig's linear programming by adding dynamic. Perhaps both motivations were true."