Topographic name from a diminutive of vado ‘ford’ (Latin vadum) or a habitational name from either of two places named with this word: Valillo de la Guarena in Zamora province or Vadillo de al Sierra in Ávila.
One who came from Badillo (small ford), in Spain. This looks like the diminutive form of "badil" meaning a fire shovel. "Badillo" comes from "vado" meaning a place to cross the river. Other Spanish names from this name source are Vado, Bado and Vadillo.