From my memory, folks were hanging out in the discord (the discord came before the website as a group of folks who wanted to start a different kind of community) and were talking about possibilities for the site. Early on there was talk of developing something from scratch (in fact, I think a working prototype was developed before it was decided to pivot to lemmy) and the admins needed something to name the github repo. As I recall somebody stuck their head in and just said the word "beehaw" and it stuck. I could be mixing things up, the timeline is a bit fuzzy and it's possible there were other discussions happening that I wasn't aware of. But as far as I remember it pretty much came out of nowhere and everybody just kinda shrugged and said, "that's the one".
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To add to this, I dug up old stuff and it turns out this was probably because the same person who came up with the name had a few hours prior suggested we use this great bee art for the server icon!
I love it so much. And the crab is their little fren, and they go out riding on the open range together to gather flowers and pollen. Best buds.
and yet the opportunity to have the crab go 'yeeclaw' was missed. I seem to remember seeing a cross stitch of a crab in a cowboy hat saying that before, but still;