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Dandy is a short form of the forename Andrew. There are two main types of such shortenings: they are convenient for writing, e.g. in lists; or they are essentially spoken pet-names, and thus informal. (See Conventional abbreviations for forenames.)

Short form Long form Informal or written Other short forms Remarks
Dandy Andrew informal Dand; Nand; Andy Dand(y) and Nand are mostly used in Scotland

There is a list of similar names at Conventional abbreviations for forenames, as well as the category:short names

Note that any informal form may be spelled in different ways. Notably, any spelling listed that ends in '-ie' may be written with the ending '-y', and vice versa.
The common noun 'a dandy' is largely historical, though it can still be heard. In history, it was given to those fine young gentlemen who cared greatly about appearances, 'fops’ or 'exquisites'. Various transferred uses are recorded in different crafts and trades.
This sense gave rise to the adjective dandy, used (mostly in American English) to mean 'fine', 'splendid' or 'first rate' (OED), and the identical adverb to mean 'finely' or 'splendidly'.
The Dandy is also the name of a comic magazine printed in Britain, and published from 1937 to 2012, and briefly therafter on line as The Digital Dandy. It contains almost exclusively strip cartoons narrating simple stories, usually involving turning the tables on an anti-hero, by such characters as Desperate Dan ("the world's strongest man", and a cowboy); Korky the Cat; and Beryl the Peril (a schoolgirl who infuriates her parents - and all adults).