The philologist Johann Christoph Adelung (1732–1806) states that the word has an origin in the Germanic vernacular, where pumpern was a New High German synonym for being flatulent, and Nickel was a form of the name Nicholas, commonly associated with a goblin or devil (e.g. Old Nick, a familiar name for Satan), or more generally for a malevolent spirit or demon.

A variant of this explanation is also given by the German etymological dictionary Kluge that says the word is older than its usage for this particular type of bread, and may have been used as a mocking name for a person of unrefined manners (a "farting Nick") first.

The change of meaning may have been caused by its use as a mocking expression for the (in the eyes of outsiders) unrefined rye bread produced by the Westphalian population.

Like most traditional all-rye breads, pumpernickel is made with an acidic sourdough starter, which preserves dough structure.

[citation needed] German pumpernickel is often sold sliced in small packets in supermarkets, where it may be paired with caviar, smoked salmon, sturgeon, and other expensive products on an hors d'oeuvres tray.

The term "pumpernickel" is often used in North America, especially in the United States, to refer to an airy style of dark-colored wheat-and-rye sandwich bread or bagel originally popularized by Ashkenazi Jewish delis.