n. — Newfoundland, derogatory, rare
an inhabitant of a (usually distant) coastal settlement.
Type: 3. Semantic Change — Noddy is a variant of the derogatory term baynoddy, a word used to describe someone from a Newfoundland outport (see DNE, s.v. "noddy (n.2))", as opposed to St. John's. A connection of noddy to British English noddy (EDD, s.v. "noddy") in the meaning of 'simpleton' is evident.
See also COD-2, s.v. "noddy", which is marked "Cdn (Nfld) derogatory".