Why do they call Chile Chile?

You could be asking about either of the following:

1. The nation of Chile. This word was around by the time the Spanish arrived in the 16th Centuruy. It has been suggested that it comes from a word meaning "land's end" or perhaps "cold" (by chance resembling English "chilly").

2. Spicy pepper (spelled chili in English, chile in Spanish). This word was adopted from Nahuatl or Aztec language.

3. Chile con carne. The dish originated in the U. S. Southwest and named from Spahish for "chili [pepper] with meat."