1836, "small, crisp biscuit in the form of a knot, salted on the outside," from German Prezel, also Brezel, from Middle High German brezel, prezel, from Old High German brezitella, brecedela, from Medieval Latin *brachitella, presumably a kind of biscuit baked in the shape of folded arms (source also of Italian bracciatella, Old Provençal brassadel), diminutive of Latin bracchiatus "with branches, with arms," from bracchium "an arm, a forearm," from Greek brakhion "an arm" (see brachio-).
The figurative sense of "a thing much twisted" is by 1945. Â Soft pretzels are attested by 1893 in the German regions of Pennsylvania, but did not become widely popular until mid-20c.