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The first letter B indicates what the diode is made of, i.e. B stands for Silicon, hence it is a Silicon diode in this case (it could have been a Germanium diode if the first letter was A instead of B). And the second letter, Y in this case stands for the function of the diode, i.e. Rectifier (As these diodes are often used in rectifier circuits). Other second alphabets could be A, B, or Z which stand for separate functions (which I don't remember at the moment).

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Q: What does BY stand for in the name of the diode BY127?
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