In 1987, friends Billie Joe Armstrong and Mike Dirnt, 15 years old at the time, formed a band called Sweet Children. Its first live performance took place on October 17, 1987 at Rod's Hickory Pit in Vallejo, California where Armstrong's mother was working. In 1988, Armstrong and Dirnt began working with Sean Hughes and the former Isocracy drummer John Kiffmeyer, also known as Al Sobrante. Kiffmeyer served as both the band's drummer and business manager, handling the booking of performances and helping the band establish a fan base, and Sean Hughes served as the band's bassist. As said in the film Punk's Not Dead, Armstrong cites the band Operation Ivy (which featured Tim Armstrong and Matt Freeman of Rancid) as a major influence, and a group that inspired him to form a band.
After Hughes left Green Day in 1988, Larry Livermore, owner of Lookout! Records, saw the band play an early show and signed the group to his label. In 1989, the band recorded its debut extended play, 1,000 Hours. Before 1,000 Hours was released, the group dropped the name Sweet Children; according to Livermore, this was done to avoid confusion with another local band Sweet Baby. The band adopted the name Green Day, allegedly due to their fondness for marijuana.
https://en.wikipedia.org/wiki/Green_Day