There is a traditional song called "Wearing O' The Blue" with very similar lyrics to the third "Canadee-i-o" listed in the DT database.
Verses three and four should explain it.
WEARING O' THE BLUE
She was born a merchant's daughter, in London she did dwell.
She dearly loved a sailor lad, she dearly loved him well.
That sailor lad was bound to sea, to join a man o' war.
And the way to get along with him was the way she did not know.
She bargained with two sailors, for each a purse of gold.
They quickly got her up on deck and down into the hold.
They dressed her up in sailor's clothes, the captain did not know.
And they soon will reach that bonny shore, of Canadee-i-o.
When her lover chanced to know, he in a passion flew.
We'll tie her hands behind her back and overboard she'll go.
We'll tie her hands behind her back, she'll die a public show.
And she ne'er will reach that bonny shore of Canadee-i-o.
Oh no, no cried the captain, that's a thing you must not do.
For if you drown that sailor boy, it's hang-ed you will be.
For if you drown that sailor boy, you'll die a public show.
And you ne'er will reach that bonny shore of Canadee-i-o.
T'was scarcely six months later, t'was less than half a year.
The captain fell in love with her, and call-ed her his dear.
He's dressed her up in satins fine, she's won a public show.
She's now the highest captain's wife in Canadee-i-o.
Come all ye pretty fair maids, a warning take by me.
And follow with your own true love, wherever he may be.
For if by chance he may prove false, there's others may prove true.
You see the honour I have won, by the wearing o' the blue.