mid-15c., "occupation or trade of a saddler," from saddler + -y (1). From 1841 as "place where saddles are made or sold," in this sense perhaps from or felt as saddle (n.) + -ery.
Entries linking to saddlery
saddler n.
"maker of saddles," c. 1300 (late 13c. as a surname), agent noun from saddle (v.).
-y 1
noun suffix, in army, city, country, etc., from Old French -e, Latin -atus, -atum, past participle suffix of certain verbs, which in French came to be used to indicate "employment, office, dignity" (as in duché, clergié).