The giant salamander is commonly called the "baby fish" because of its baby-like cry.
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Fish radical 鱼 plus 儿 'child' - picture a 'child fish'. The giant salamander 大鲵 is nicknamed 娃娃鱼 ('baby fish') because its call sounds like an infant crying, which lines up neatly with the 'child' part of the character.
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The sense 'the female of certain fish' is literary and archaic, found only in classical texts. In modern Chinese 鲵 means the giant salamander, chiefly in the word 大鲵.
The fish radical 鱼 on the left marks 鲵 as an aquatic animal. Although the giant salamander is an amphibian, classical Chinese grouped it with fish because it lives in mountain streams.
The right side 儿 'child' supplies the sound (the older reading was close to ní). It doubles as a faint hint: the salamander's cry resembles a crying child, the very image behind its folk name 娃娃鱼.