So why do they call it a "spelling bee"?

A spelling test, Spelling competition, but a spelling bee?

A ‘Bee,’ seems to come to us from "as busy as a bee.’ From that we get a communal activity. A quilting bee for example.

From Merriam-Webster:

That still doesn’t answer why it is a “spelling bee” however. A spelling bee is a contest rather than a communal activity. By that definition, kids would need to sit around helping each other spell big words.

“helping each other” is not part of the definition in Merriam-Webster.

http://www.word-detective.com/112402.html#bee