The genus Erica gets its name from ereiko, meaning ‘to break’, either because of the ability of the plant to break up bladder stones or more probably because the stems are brittle and break easily. The species name grandiflora means ‘large flowered’.

This species was named by Linnaeus the Younger in 1782. It was moved into the Erica abietina complex in 2002 and renamed Erica abietina subsp. aurantiaca. The name abietina means ‘like the genus Abies’ referring to the fir-tree-like leaves, and aurantiaca means ‘golden’ or ‘orange-coloured’, referring to the colour of the flowers. Recent molecular studies show that this species is not as closely related to the Erica abietina group of the Cape Peninsula as previously thought, but shares more affinity with the Erica viscaria group of the mainland and should be treated as a separate species. Its original name has therefore been reinstated.  Another subspecies formerly grouped in the abietina complex, Erica abietina subsp. perfoliosa, which occurs on granitic slopes in the Jonkershoek Valley near Stellenbosch and has pure yellow flowers and densely hairy, non-sticky corolla tubes and leaves, 20–30 mm long but can be as long as 42 mm, is now classified Erica grandiflora subsp. perfoliosa. The name perfoliosa meaning ‘very leafy’.