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Leeds is called Leeds because the name derives (comes from) Loidis which was the name of a forest covering that area of England.

Something random:

Towns with ley on the end like Guiseley, Otley and Ilkley mean they were originally situated in a clearing of forest and early inhabitants made it a permenant camp because of it.

Also a small folklore goes round in towns around Leeds. Many of the towns were named after Animals that lived there when the first settlers arrived. Guiseley = Geese-ley Otley = Otter-ley.

I live around here so that's how I know.

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Q: Why is leeds UK called leeds?
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