It is referred to as a “locker loop” (or sometimes “backstay loop”), because it allows sailors to hang their uniforms on hooks. Easy as that. Sailors were hanging their shirts, on hooks, not hangers or shelves, just a hook, a peg, and this little loop. So the navy with this incredibly simple design kept their shirts off the deck and wrinkle-free. This goes a long way when you are trying to avoid looking like you fell asleep in your dress uniform.
You cannot hate me for thinking this was a truly great piece of design! Something so simple that actually worked. I mean there is nothing difficult about it, it is not rocket science or some amazing technology?! Just a loop of fabric on the back of a shirt. However, on a rocking ship when space was a premium and storage was a complete mess, that little loop was just a tiny bit of ease.
source: GANT
Apparently, it stuck.
Now this is where the story turns from practical to preppy. A couple of decades later and suddenly this loop is no longer a Navy thing—it is on campuses, especially Ivy League campuses. And the students there—who certainly were not living on boats—begin wearing shirts with loops.
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