Etymology[edit]
From Old Norse fogl, from Proto-Germanic *fuglaz. Cognate with English: fowl. In the mid 19th century, the spelling fogel was common, but SAOL 6 (1889) lists the spelling as fågel only. --wiktionary
Not really, just Swedish spelling becoming more and more regularized around the turn of the century back then, reaching its modern state some hundred years ago. One of the changes were the extremely radical measure of deciding /v/ would henceforth be spelled with V rather than hv, fv, f or v. :p
It's actually aa for å. I should note, though, that using such simulations is heavily discouraged - it's generally better to just use a, a, o instead of aa, ae, oe if you can't access å, ä, ö.