How did buzz lightyear become a toy character?

Quick Answer
Buzz Lightyear began as a one‑man band toy called Tinny, but during the creation of Toy Story director John Lasseter redesignated him as a space‑ranger action figure, giving him the name Buzz Lightyear.
Explanation
In the early stages of the Toy Story project, the character who would become Buzz Lightyear was originally a simple one‑man band toy named Tinny. During development, director John Lasseter decided to change the toy’s concept to make it more exciting for the film’s audience. He transformed Tinny into a space ranger action figure, complete with a lime‑green, purple, and white space suit, and renamed the character after astronaut Buzz Aldrin. This redesign shifted the toy from a generic musical figure to a superhero action figure, positioning Buzz Lightyear as a central character in the Toy Story universe.