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grade (n.)

1510s, "degree of measurement," from French grade "grade, degree" (16c.), from Latin gradus "a step, a pace, gait; a step climbed (on a ladder or stair);" figuratively "a step toward something, a degree of something rising by stages," from gradi (past participle gressus) "to walk, step, go," from PIE root *ghredh- "to walk, go." It replaced Middle English gree "a step, degree in a series," from Old French grei "step," from Latin gradus.

Meaning "inclination of a road or railroad" is from 1811. Meaning "class of things having the same quality or value" is from 1807; meaning "division of a school curriculum equivalent to one year" is from 1835; that of "letter-mark indicating assessment of a student's work" is from 1886 (earlier used of numerical grades). Grade A "top quality, fit for human consumption" (originally of milk) is from a U.S. system instituted in 1912. To figuratively make the grade "be successful" is from 1912; early examples do not make clear whether the literal grade in mind was one of elevation, quality, or scholarship.

grade (v.)

1650s, "to arrange in grades," from grade (n.). Meaning "to reduce (a road, etc.) to a level or degree of inclination" is from 1835. Meaning "assign a letter mark to" is from 1931. Related: Graded; grading.

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Definitions of grade from WordNet
1
grade (n.)
a body of students who are taught together;
Synonyms: class / form / course
grade (n.)
a relative position or degree of value in a graded group;
lumber of the highest grade
Synonyms: level / tier
grade (n.)
the gradient of a slope or road or other surface;
the road had a steep grade
grade (n.)
one-hundredth of a right angle;
Synonyms: grad
grade (n.)
a degree of ablaut;
Synonyms: gradation
grade (n.)
a number or letter indicating quality (especially of a student's performance);
grade A milk
Synonyms: mark / score
grade (n.)
the height of the ground on which something stands;
the base of the tower was below grade
Synonyms: ground level
grade (n.)
a position on a scale of intensity or amount or quality;
a moderate grade of intelligence
Synonyms: degree / level
grade (n.)
a variety of cattle produced by crossbreeding with a superior breed;
2
grade (v.)
assign a rank or rating to;
Synonyms: rate / rank / range / order / place
grade (v.)
level to the right gradient;
grade (v.)
assign a grade or rank to, according to one's evaluation;
grade tests
Synonyms: score / mark
grade (v.)
determine the grade of or assign a grade to;
From wordnet.princeton.edu