Initially the torch served solely as a source of light, but quickly took on a symbolic meaning. Even in pre-Christian religions it was a sign of divinity. Christians attributed the cardinal virtue of wisdom to the torch, and other cultures used it to drive away evil spirits. Today the torch serves as a symbol of peace at the Olympic Games.
So it is not surprising that the origin of the word can already be found in Latin. From Latin “fax” the New High German “fackel” developed in German via ahd. “facchala” and mhd. “vackel”.