1580s, "pertaining to or resembling a bat or bats," from bat (n.2) + -y (2). Slang sense "nuts, crazy" is attested from 1903, from the colloquial expression (to have) bats in (one's) belfry "not be right in the head" (1899).
battledore
battlefield
battlement
battleship
battology
batty
bauble
baud
Bauhaus
baulk
bauxite