The name Demon is a boy's name meaning "evil spirit; familiar spirit".

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Demon Names: The Ultimate Guide

Demon is probably best left as an edgy nickname or chosen moniker than put on the birth certificate. Typically associated with evil or familiar spirits, it could also be considered an Ancient Greek name, meaning "the people". 
 
The protagonist of Barbara Kingsolver's David Copperfield adaptation, Demon Copperhead, is actually called Damon, which, along with Damien, might be a more wearable choice.

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