The Collaborative International Dictionary of English v.0.48:

Caramel \Car"a*mel\, n. [F. caramel (cf. Sp. caramelo), LL.
   canna mellis, cannamella, canamella, calamellus mellitus,
   sugar cane, from or confused with L. canna reed + mel,
   mellis, honey. See Cane.]
   1. (Chem.) Burnt sugar; a brown or black porous substance
      obtained by heating sugar. It is soluble in water, and is
      used for coloring spirits, gravies, etc.
      [1913 Webster]

   2. A kind of confectionery, usually a small cube or square of
      tenacious paste, or candy, of varying composition and
      flavor.
      [1913 Webster]

WordNet (r) 3.0 (2006):

caramel
    adj 1: having the color of caramel; of a moderate yellow-brown
           [syn: caramel, caramel brown]
    n 1: firm chewy candy made from caramelized sugar and butter and
         milk
    2: burnt sugar; used to color and flavor food [syn: caramel,
       caramelized sugar]
    3: a medium to dark tan color [syn: yellowish brown, raw
       sienna, buff, caramel, caramel brown]