Named after the street Bay Terrace, once called Bay Terrace Avenue.
The station opened around 1897 as Brendan and was called Whitlock by 1902; the area too was formerly known as Whitlock. The main street was first named Bay Terrace Avenue, and by the late 1940s ‘Avenue’ had been dropped. The area later took the street’s name, which may refer to its flat, ramp-like land sloping gently down towards the bay.