It is so named as it resembles the bones extending from the spine of a herring fish.
A knitted herringbone stitch creates a firm fabric "similar to a woven in appearance and elasticity".
[1] A heavyweight fabric can be made with variations of the herringbone stitch, such as the herringbone twist stitch, which can be worked in either one or two colours; both versions are suitable for experienced knitters.
[2] The herringbone stitch is used as one of the symbolic motifs in the traditional knitted Aran jumper, or "fisherman's sweater"; specifically, the tradition as it exists in the Channel Islands of Guernsey, Jersey and Filey.
The herringbone pattern represents the "fisherman's catch and thus for success in one's career".