Chandler, and its variant spellings, is a family name that originated as an occupational surname in medieval England. It applied to a person involved in making or selling candles and similar articles. The earliest records as a surname are of Matthew le Candeler in London in 1274 and William le Chandeler in Essex in 1275. In the 1881 census of England, the surname Chandler was apparently used by over 0.3 % of the population.

Where does the last name chandler come from? Let's have some stream of consciousness first.
The relevant sentence in the passage is: Chandler, and its variant spellings, is a family name that originated as an occupational surname in medieval England. So, the answer is an occupational surname in medieval England.