The settlement was originally know as Deep Creek, but its post office became Sangudo when it opened in 1912. One theory is that it was an acronym created by early settlers:
S Scott and Sutton, early settlers
A Albers, the first postmaster
N Nanton, hometown of Albers’ wife
G Gusal, a pioneer
U United, characterizing the community
D Deep Creek, the original name and a nearby feature
O Orangewille, the first school