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The surname Udney, or Udny, is of territorial origin, coming from the barony of Udny, in the parish of the same name, in Aberdeenshire.
In 1406, the first person with this name is recorded when Ranald de Vldeny, dominus ejusdem, granted to a chaplain serving in the chapel of the Holy Trinity, for the soul of Patrick de Vldeny, Ranald's father, "omnes terras meas cum pertinenciis vbi antiqua capella de Vldney fuit situata et omnes terras meas iacentes inter duos torrentes scilicet de Brony et de Couly".
In 1450, Alexander de Vldeny was recorded as having witnessed the signing of a charter, and the lands of William de Vldney, or Vldny, were preambulated in 1457.
An Andrew Audny was, in 1585, a burgess in Brechin, and in 1608, Alexander Udene was recorded as being a member of Stirling council.
The last family in Scotland who are said to have kept a fool as part of their establishment were the Udnys of that Ilk.
In the Thanage of Fermartyn, there is an account of the Udny of Udny family.

Other recorded variations of this surname include Oudnay, Oudne, Oudny, Owdny, Udnie, Vdnie, Wldny, and Wdny.