Town of the peacock
A modern spelling variant of Peyton, which originated as an English surname derived from a place name. It likely refers to a settlement or town associated with a person named Pæga or the peacock bird.
Less common today
Paeton isn't in the latest US Top 1000. It last peaked at #4,155 in 2008.
US births per 5-year period, 1990βpresent (SSA data).