underdog n.

Old English under (prep.) "beneath, among, before, in the presence of, in subjection to, under the rule of, by means of," also, as an adverb, "beneath, below, underneath," expressing position with reference to that which is above, from Proto-Germanic *under- (source also of Old Frisian under, Dutch onder, Old High German untar, German unter, Old Norse undir, Gothic undar), from PIE *ndher- "under" (source also of Sanskrit adhah "below;" Avestan athara- "lower;" Latin infernus "lower," infra "below").

Productive as a prefix in Old English, as in German and Scandinavian (often forming words modeled on Latin ones in sub-). Notion of "inferior in rank, position, etc." was present in Old English. With reference to standards, "less than in age, price, value," etc., late 14c. As an adjective, "lower in position; lower in rank or degree" from 13c. Also used in Old English as a preposition meaning "between, among," as still in under these circumstances, etc. (though this may be an entirely separate root; see understand).

Under the weather "indisposed" is from 1810. Under the table is from 1913 in the sense of "very drunk," 1940s in sense of "illegal" (under-board "dishonest" is from c. 1600). To keep something under (one's) hat "secret" is from 1885; to have something under (one's) nose "in plain sight" is from 1540s; to speak under (one's) breath "in a low voice" is attested from 1832.

"quadruped of the genus Canis," Old English docga, a late, rare word, used in at least one Middle English source in reference specifically to a powerful breed of canine; other early Middle English uses tend to be depreciatory or abusive. Its origin remains one of the great mysteries of English etymology.

The word forced out Old English hund (the general Germanic and Indo-European word, from root from PIE root *kwon-) by 16c. and subsequently was picked up in many continental languages (French dogue (16c.), Danish dogge, German Dogge (16c.). The common Spanish word for "dog," perro, also is a mystery word of unknown origin, perhaps from Iberian. A group of Slavic "dog" words (Old Church Slavonic pisu, Polish pies, Serbo-Croatian pas) likewise is of unknown origin. 

In reference to persons, by c. 1200 in abuse or contempt as "a mean, worthless fellow, currish, sneaking scoundrel." Playfully abusive sense of "rakish man," especially if young, "a sport, a gallant" is from 1610s. Slang meaning "ugly woman" is from 1930s; that of "sexually aggressive man" is from 1950s.  

Many expressions — a dog's life (c. 1600), go to the dogs (1610s), dog-cheap (1520s), etc. — reflect the earlier hard use of the animals as hunting accessories, not pets. In ancient times, "the dog" was the worst throw in dice (attested in Greek, Latin, and Sanskrit, where the word for "the lucky player" was literally "the dog-killer"), which plausibly explains the Greek word for "danger," kindynos, which appears to be "play the dog" (but Beekes is against this).

Notwithstanding, as a dog hath a day, so may I perchance have time to declare it in deeds. [Princess Elizabeth, 1550]

Meaning "something poor or mediocre, a failure" is by 1936 in U.S. slang. From late 14c. as the name for a heavy metal clamp of some kind. Dog's age "a long time" is by 1836. Adjectival phrase dog-eat-dog "ruthlessly competitive" is by 1850s. Phrase put on the dog "get dressed up" (1934) may be from comparison of dog collars to the stiff stand-up shirt collars that in the 1890s were the height of male fashion (and were known as dog-collars from at least 1883).

And Caesar's spirit, ranging for revenge,

With Ate by his side come hot from Hell,

Shall in these confines with a monarch's voice

Cry Havoc! and let slip the dogs of war;

[Shakespeare, "Julius Caesar"]

"being at the top," 1590s, from top (n.1). Top dollar "high price" is from 1942. Top-drawer (1920) is from British expression out of the top drawer "upper-class." Top ten in popular music is from 1945 ("Billboard"). The top dog is the one uppermost in a fight, from 1868 in figurative use, opposed to the underdog.

But if the under dog in the social fight runs away with a bone in violation of superior force, the top dog runs after him bellowing, "Thou shalt not steal," and all the other top dogs unite in bellowing, "This is divine law and not dog law;" the verdict of the top dog so far as law, religion, and other forms of brute force are concerned settles the question. [Van Buren Denslow, "Modern Thinkers: What They Think and Why," 1880]