Covered with, containing, or consisting of gravel; also, past tense of the verb 'to gravel' (to perplex or puzzle).
From 'gravel' (from Old Norse 'greif'), the word functioned as an adjective describing surfaces, or as a verb meaning to perplex (archaic usage from 16th century). The '-ed' ending marks the past tense or adjective form.
Graveled is a brilliant example of word multiplication—the same word can mean both 'covered in rocks' and 'completely puzzled,' because historically people would use 'gravel in the gears' metaphorically to describe mental confusion.
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