The story
- Middle Englishmilioun
- Englishmillionbf.
- English today-illion
Back-formation from million, then used in billion, trillion, quadrillion, each from French, ultimately from Italian mille (“thousand”) and the augmentative suffix -one. -illion was segmented from million as if mi- was a prefix, and -illion the stem.
Etymology from Wiktionary, CC BY-SA 4.0.