What does "fairy" mean?

Additional senses

1. 2.An imaginary supernatural being or spirit, supposed to assume a human form (usually diminutive), either male or female, and to meddle for good or evil in the affairs of mankind; a fay. See Elf, and Demon. The fourth kind of spirit [is] called the Fairy. K. James. And now about the caldron sing, Like elves and fairies in a ring. Shak.
2. 3.An enchantress. [Obs.] Shak. Fairy of the mine, an imaginary being supposed to inhabit mines, etc. German folklore tells of two species; one fierce and malevolent, the other gentle, See Kobold. No goblin or swart fairy of the mine Hath hurtful power over true virginity. Milton.
3. 4.Of or pertaining to fairies.
4. 5.Given by fairies; as, fairy money. Dryden. Fairy bird (Zoöl.), the Euoropean little tern (Sterna minuta); -- called also sea swallow, and hooded tern. -- Fairy bluebird. (Zoöl.) See under Bluebird. -- Fairy martin (Zoöl.), a European swallow (Hirrundo ariel) that builds flask-shaped nests of mud on overhanging cliffs. -- Fairy rings or circles, the circles formed in grassy lawns by certain fungi (as Marasmius Oreades), formerly supposed to be caused by fairies in their midnight dances. -- Fairy shrimp (Zoöl.), a European fresh-water phyllopod crustacean (Chirocephalus diaphanus); -- so called from its delicate colors, transparency, and graceful motions. The name is sometimes applied to similar American species. -- Fairy stone (Paleon.), an echinite.