Derived from the two Swedish words "norden" which refers to the region of Sweden, Finland, Denmark, Norway and Iceland. The other word, skiöld, is an old way of spelling the word "sköld" that means shield.
The Nordenskiöld family is a royal family with membership in the Swedish-Finnish Knight's House (the British equvalient would be the Upper house).
The roots of the Nordienskiöld family lie in Uppland in modern day Sweden but the family relocated to what is modern day Finland in the early to mid 18th century. Many returned to Sweden after Sweden lost Finland to Russia in the Finnish War.
There are several famous bearers of the name, one of the more modern ones would be Adolf Erik Nordenskiöld.
Note: The name is sometimes anglisized by removing the letter ö and replacing it with an o.
There are several varriants of the name: Nordensköld, Nordenskjöld and the anglisized versions.