Here’s what wiki says are the possible origins of the name Dinkytown:
..The streetcars, called Dinkys, that used to provide transit throughout the area.
..Similarly, the tenders at the nearby railyard were called Dinkys
..The theatre in Dinkytown had only four rows of seats, and for years was known as “The Dinky”
..It’s a small town-like area, with everything within walking distance.
..The Loring Pasta Bar, previously Gray’s Drug on 14th Ave. SE and 4th St. SE has the name of an early owner carved in Slavic in stone over the doorway: “Grodnik,” meaning a small (or dinky) town.