The name means "Place of Cattails" in the Nahuatl language. Names with the same meaning were used in Maya and other native Mexican languages.
Teotihuacan seems to have been the first city known by this name. After the collapse of the Teotihuacan empire, central Mexico broke into various petty states. The Toltec created the first sizable Mexican empire after the fall of Teotihuacan, and their capital was referred to by the same name as a reference to the earlier greatness of Teotihuacan.
In Aztec accounts at the time of the arrival of the Conquistadores, Teotihuacan and the Toltec capital sometimes seem to be confused and conflated.
"Tollan" was also sometimes used to refer to a great metropolis or major capital. Cholula, for example, was sometimes called "Tollan Cholula", and the Aztec capital of Tenochtitlan was also given this title. The Mixtec translation of this name Ñuu Co'yo is still the Mixtec name for Mexico City to this day.