The Otzar Yisroel Encyclopedia explains that each one individually called Tefilla and together they are called Tefilin. It comes from the word פלא which has many meanings, speech, separation, prayer and hidden. Speech as mentioned above, remembering Yetzias Mitzraim. Prayer, used for praying, tying us to Hashem. Separation, it separates us from the goyim, recognizing that the name of Hashem is on us, and hidden, maybe, the parshiyus are hidden.
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