In Where does the name "Drupal" come from?, a drupal.org member explains,

Drupal (droo-puhl) is the English pronunciation for the Dutch word 'druppel' which stands for 'drop'. The word drop was chosen for the drop.org community blog after Dries made a typo when he checked to see if dorp.org was available. 'Dorp' is the Dutch word for village. The word stuck.

Fits, too, since at its design core, all major drupal content is stored as a "node," an object or "drop." Seems that village and node are what drupal is all about :)