The word 'ye' in names such as Ye Olde Inn ('the old inn') was originally simply pronounced 'the'.

The pronunciation with y is due to a misinterpretation of the first letter.

'Ye' originated as a second-best way of writing 'þe'. The first letter, þ, was called thorn. It was a letter for the th sound that originated in Old English.

Where did þ come from? How did it disappear? And why was it substituted by y in the word 'ye'?

Click my new infographic to read all about it:

@yvanspijk I always understood it predated printing and was beacuse scribes in a hurry wouldn't form the bow correctly and hence the 'Þ' started to look like a 'y'
@caskfan I'm afraid that's a myth. It's not what the data show, and if being in a hurry had been a consistent factor for centuries, other letters with a bow would also have been affected.