For example, Ned for Edward. At one time, it was common to add ‘mine’ to the beginning of a name to denote affection. Mine Ed = my Ned.
Some names evolved due to the differences in regional pronunciations and accents. Margie for Margaret became Maggie and Meg, then Peg simply because it rhymed (there is a similar phenomenon in play in today’s slang), then Peggy.
In England, nicknames for John evolved over time. It went from John to Johnkin to Jankin to Jackin to Jack.
Then there are nicknames derived from other languages. Daisy is a nickname for Margaret, which seems like nonsense unless you know that the French word for daisy is marguerite.