One standard but dubious etymology of Veronica arises from this story, and is the origin found in many, poorly researched “names-for-your-baby” books. Monkish folk etymology posits that the name is a contraction of the Latin phrase vera iconica meaning ‘true image,’ from the same Greek root that gives us the word for a religious painting, icon. Such a derivation is linguistically unlikely.
Much more probable is the derivation of Veronica from a medieval Latin adjective veronicus that meant ‘a person from the Italian city of Verona.’ Veronica would mean a woman of Verona , a suitable name for a girl because the women of that city were considered to be among the most beautiful in all of medieval Italy . Shakespeare places Romeo and Juliet “in fair Verona where we lay our scene.” But Verona also claimed to possess the veil of St. Veronica at one point during the Renaissance! Sixteenth-century Italian referred to this as la veletta veronica ‘the Veronese veil.’ This, I believe, is the origin of the feminine first name. Véronique is the French spelling. In some Slavic tongues, it is Veronika or Beronika. The fact that one of the Catholic Stations of the Cross commemorates St. Veronica’s kindness to the suffering Jesus insures the name’s continued popularity in all languages of the western world.
Another doubtful source of the given name Veronica is the female first name Berenice (often shortened to Bernice), originally a Macedonian form of the Greek Pherenike ‘bringer of victory.’ The vowel shiftings and interlingual gradations necessary to support this bizarre transformation may happen on Mars, but have not so far occurred on earth, except in the frantic noggins of certain desperate etymologists.
Modern Dictionaries Say the meaning is simply 'True Image' and is latin.