Today, the word "Austria" is used in the English-speaking world to more easily refer to the German-speaking country of Österreich. In fact, this term was first used, in the former nation of Langbard, as the name of the eastern sector of the nation.
From 'History of the Lombards', page 245, footnote 1 in regards to an Austria reference (Edward Peters): "This name was used to designate the eastern part of the Langobard kingdom, and was often mentioned in the laws of king Liutprand (Waitz). Its western boundary was the Adda, and the land west of that stream was called Neustria, which, with the third division, Tuscia, constituted the main kingdom immediately subject to the king, as distinguished from the duchies of Spoleto and Benevento."
All this is further confused as Österreich had it's heel firmly planted on "Austria" (Lombardy, Trentino, and the Veneto) many centuries later. The above flag is either the flag of the "Langobard Austria" or a flag of the Österreich occupation. It's likely the original, since the official flag for the occupied "Lombardo-Venetia" puppet state was a tan flag with an arms of both Lombardy and the Veneto on it. The double-headed eagle was used by many European cultures over the centuries.
[Above: The three states in Langbard proper. Neustria, Austria, and Tuscia. Yes, Tuscany was part of Langbard.]