The acronym stands for: PYthon eXtension for Ab Initio Dynamics (primarily)
but the other meaningful deciphering is:PYthon for eXcited (states) Ab Inition Dynamics or, even simpler - XD (large letters in the logo) - eXcited Dynamics
Currently the main focus in on Quantum Espresso (QE), also known as PWscf. In general the program can work with any other ab initio program - that is just a matter of little more programming/scripting.
Also note that the so-called step3 is performed independently of any quantum-mechanical package - it just requires the files containing necessary input information (electronic Hamiltonian and, optionally, transition dipole moments), no matter how it was obtained.
The most time-critical parts are efficiently coded in C++. For less time-consuming procedures Python is used, making the modules easy to understand, extend and use. In addition to that, the template PBS scripts are available for calculations on the clusters.