Now that season two of A Series of Unfortunate Events has finally been released, most of your lingering questions following season one have been answered.
Through both The Incomplete History of Secret Organizations and some detective work by two of the Quagmire triplets, we've discovered that VFD is the secret organization the Baudelaires, the Quagmires, Larry the Waiter, and Lemony Snicket himself are part of. In season one, Snicket mentions the "Volunteer Fire Department," which appears to be the most commonly used name for a group of The Good Guys.
But the acronym "VFD" in the Netflix series is more prominent than meets the eye.
The letters V, F, and D appear throughout seasons one and two in meticulously crafted three-word sequences: "Vigorously Fixed Destination." "Very Frightening Decisions." "Very Fancy Doilies." VFD is also discovered inside Count Olaf's mysterious ankle tattoo. The three letters together form an eye, a symbol that the children seem to see everywhere they go.
When Jacques Snicket reveals that he, too, has the same VFD tattoo, it's realized that Olaf is living the classic good-guy-gone-bad scenario: a former member of the Volunteer Fire Department who now dedicates his life to ruining the lives of others . . . especially when it comes to the Baudelaires. The poor Baudelaires.
I suggest you Value the Frightful Despair while you still can.