The word activation is a derivative of the word active, which is defined in this use case by Merriam-Webster as "producing or involving action or movement."
In the tech world, the word activation is usually talked about in terms of making a product active for use on someone's computer, game system, or other electronic device. Product activation is an easy way for consumer electronics makers to limit the number of people who can use their creations without paying for an additional copy of the item. Popular software maker Microsoft uses lengthy activation keys with each of their products, preventing consumers from installing their goods on multiple machines beyond their home or office.
As long as there is a way for companies to make money off these products, activation keys will continue to be in place.
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