Because it was called after Lemmings.

In a 2020 post, Lemmy’s co-creator Dessalines wrote about the origin of the name Lemmy. “It was nameless for a long time, but I wanted to keep with the fediverse tradition of naming projects after animals. I was playing that old-school game Lemmings, and Lemmy (from Motorhead) had passed away that week, and we held a few polls for names, and I went with that.”