There are lots of varying stories about the origins of the Native American Flute, so I am not going to fill this space with more. Basically, its roots obviously originate in the Native American cultures, and different tribes have different explanations or stories. See Legends.
The flute is a 5 or 6-hole pentatonic flute. For the non-musicians out there, pentatonic means that the hole settings facilitate a scale of notes that are consistent with each other. (This is a very simple definition, may I say.) What it comes down to, you can play without having to know which ‘notes’ you are playing. They will always harmonize with each other, making it very easy to find melodies and improvise. When playing with others, you do have to make sure the base tones match, not every flute is playable with every other flute. Basically, if the flutes have the same base key, then they can be played together.
There is something special about Native American Flutes, something seemingly magical, and so they are often used in mediation and healing ceremonies. They open the hearts of their listners, which is reflected in the legends of their origins, and that is why they are often referred to as Native American Love Flutes.