Douglas Harper's Etymology Dictionary
1908, from crazy (adj.) + stir (n.) "prison" (1851), probably from Start Newgate (1757), prison in London, later any prison (1823), probably from Romany stardo "imprisoned," related to staripen "a prison." According to Barnhart, mid-19c. sturaban, sturbin "state prison" seem to be transitional forms.
Wiktionary
a. 1 (context idiomatic English) Of a prisoner, mentally unbalanced due to prolonged incarceration. 2 By extension, restless, uncomfortable, or impatient due to inactivity or confinement.
Usage examples of "stir-crazy".
Jose and the other guy had sat around reading the newspaper and talking between themselves in Spanish, while Kayla sat in the bedroom, slowly going stir-crazy.
He usually enjoyed the free period between assignments, but this time Bill felt restless, stir-crazy, almost claustrophobic.