GT350/GT500?

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It's moreless a model number. It dont really have any particular meaning they were just picked to be the numbers. The 350 describes the smallblock powered car(289-302) and the 500 would be the FE big block cars(427-428) There are many other points that go along with the Shelby Mustang names but that's kind of a quick rundown.
 
Carrol Shelby was trying to decide what to call his new cars along with some of the other executives back in 64.......

so finally he stood up and asked them how far away the assembly line was from his office.....

the answer...about 350 feet.....hence the GT350 was born......

The GT500 was first introduced in 1967, however I am not familiar how the 500 designation came to be........