I think its called universal indicator because it can indicate the full or at least a larger range of pH than litmus or methyl orange. You might want to ask your science teacher though.
Good question! Having just done a bit of reading around, it may will we that before Univeral indicator, we had to rely on multiple other indicator solutions for different purposes, which used different colours and weren’t clear. ‘Universal’ on the other hand suggests one indicator is good for a variety of tasks. This is mentioned in a very old scientific paper (1937!):
“the observer may have difficulty in interpreting the many
separate color changes met with in covering a wide pH
range. This is, of course, due only to the lack of
familiarity of the spectators with the indicators used,
but rarely are demonstrations carried out with audi-
ences having the necessary experience. A universal indicator,
on the other hand, has the advantage that
only one indicator solution (and one set of color stand-
ards) is needed. After the significance of the color
changes has been explained, the audience has little
difficulty in following and interpreting the phenomena
observed.”
(http://pubs.acs.org/doi/abs/10.1021/ed014p274)
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