The original Ugg shoe was made in Australia. The people wore them around the home because they were so comfortable and easy to slip on. When World Wars I and II pilots began wearing them, they became tremendously popular among pilots. They wore them as a way of keeping warm because the planes they flew were not pressurized, which resulted in really cold temperatures.
These pilots dubbed the boots "fug" which was taken to mean flying ugg. No matter what they called them, the result was that they were cozy in ugg boots. Sheepskin is a perfect way to keep your feet warm without causing them to sweat. They work similar to a thermostat by providing more warmth when needed and less when it is not. That is one reason they are recommended to be worn without socks.
Ugg boots became more popular in the 1960's when Australian surfers started making their own boots for warmth when they were not in the water. The appearance of the boots was ugly. In Australia Ugg is not considered a brand name. It is merely a term meaning sheepskin boot. This has been the subject of controversy for a long time. What basically started out as a house shoe in Australia has taken on an entirely new look as consumers search for ugg nightfall boots that have the Ugg name.