The English family name Elshaw is classified as being of habitation name origin. Habitation names are those family names which are derived from either the location of the place of residence of the initial bearer or from the name of the town or village from whence he hailed. In some instances a habitation name refers to a residence which was distinguished by a sign or engraving usually displayed over the door. In this particular instance, the name Elshaw is derived from the place name Illshaw Heath, located in the West Midlands, two miles northeast of Hockley Heath, in Cheshire, England. Thus the original bearer of this name was known by members of his community as the "one from Illshaw". This place name signifies "Eli's nook" and is derived from the old English personal name "Eli" and "halh" meaning "nook of land". Variants of the surname Elshaw include Ellshaw, Hilshaw and Ilshawe.

One of the earliest references to this name or to a variant, is a record of one Agnus Ilshawe, daughter of Thome and Angetis Ilshawe whose christening was recorded in Wootten Wawen, Warwick, England in, March 14, 1550. Charles Elshaw and Anne Rowles were married in Minchinhampton, Gloucester, England, February 7, 1621. However, research is ongoing and this name may have been documented even earlier than the dates indicated above. The marriage of Betty Hilshaw and John Kenyon was celebrated in Saint Peter's Church, Bonton le Moors, Lancashire, May 21, 1804; Charles Elshaw, son of James and Grace Elshaw, was christened in Dronfield, Derby, September 7, 1834. This name was introduced to America as early as 1868, in which year there is a record of the immigration of Edward Ellshaw to Philadelphia.