The name is more actually a Portuguese form of James / Jacob. Saint James was originally called 'Santo Iago', which became 'Sant'Iago (Santiago)' and finally 'São Tiago'. [noted -ed]The name was always rare in Portugal but was revived in the 1970's or so and it exploded in popularity. Nowadays it's probably one of the most common names among young Portuguese man. It's also popular in Brazil, where it is often (and erroneously) spelt 'Thiago'.
I've heard somewhere that Tiago's meaning (the same as the other variants, like Thiago, Thyago, Tyago, Thiaggo, and many others) is "the one who helps the others", "the strongest one", "the one who progresses", "the one that makes improvements", "the one who wins". And like the other variants in other languages (for example James) Tiago (and all variants) gets the meaning of "God's Heel", "God's Warrior", "God's Left-Hand", "God's Creativity".
The name was always rare in Portugal but was revived in the 1970's or so and it exploded in popularity. Nowadays it's probably one of the most common names among young Portuguese man. It's also popular in Brazil, where it is often (and erroneously) spelt 'Thiago'.