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t2india.com
Description:
This attribute lake is said to be one of the emerald green eyes of Shiva's wife, Sati (naina is Sanskrit for eye). When Sati's father failed to invite Shiva to a family sacrifice, she burnt herself to death in protest. Shiva gathered the charred remains in his arms and proceeded to engage in a cosmic dance, which threatened to destroy the world. To terminate the dance, Vishnu chopped up the body into pieces, and the remains were scattered across India. The modern Naina Devi Temple at the northern end of the lake is built over the precise spot where the eye is believed to have failen.
Nainital Travel Guide