Its source is an English expression meaning "From Denmark."
The name Dane ranked 441st in popularity for males of all ages in a sample of 2000-2003 Social Security Administration statistics and 621st in popularity for males of all ages in a sample of the 1990 US Census.
Though this name appears on the 1990 U.S. Census lists, it is used by only a small percentage of the general population.
It is possible this surname indicated Danish ancestry, or residence close to the English river Dane. It is also possible that it is an alternate form of the name Dean.