Bermuda shorts did not originate in Bermuda, but they are the national clothing of Bermuda. The British military gets credit for their creation. As the imperialistic nation expanded in the late 19th century, many fully-clothed soldiers complained of the stifling heat in parts of the world like the Carribean. To solve this, the Brits modified their dress code a bit, trimmed off their formal pants and turned them into shorts.
All Bermuda shorts are by definition above the knee–and are considered formal wear, in Bermuda. The Bermudans adopted the British military custom and ran with it like wildfire. Bermuda in the early 20th century was the playground of the uber-elite of the UK and the US, and many men brought their un-covered knees back to Martha’s Vineyard with them. As such, Bermuda shorts became a smash sensation in the preppy East Coast in the 1950s, which was when they began to take on different pastel shades.
The most important thing to remember about Bermuda shorts is that when planning them in your outfit, you should treat them as the exact same as wearing dress pants, except that they’re not. They’re shorts that go above your knee. As such, men will often wear a fancy shirt, tie, blazer, high socks, shoes, and Bermuda shorts, and no one would give a crap. Apparently you can even get away with Bermuda shorts as wedding attire, which makes me really wish that I had gotten married in Bermuda.