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I think it goes way back to when new devices were initially tested back in the day...long ago. If the first time you fired it up it didn't catch fire then you could carry on with formal testing. Nice to hear it still being used today, even for software, which really shouldn't pose a fire hazard.
Might be this question appears to be funny....Why smoke testing is called as smoke testing....
1) Smoke testing originated in the hardware testing practice of turning on a new piece of hardware for the first time and considering it a success if it does not catch fire and smoke.
Same like that in software industry, smoke testing is a shallow and wide approach whereby all areas of the application without getting into too deep, is tested.
2) Smoke testing is conducted to ensure whether the most crucial functions of a program are working, but not bothering with finer details.
