Etymology
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doily (n.)

"small, ornamental napkin," 1714, short for doily-napkin (1711), from doily "thin, woolen fabric;" supposedly from Doiley, surname of a noted late 17c.-early 18c. dry-goods dealer on London's Strand. Doily earlier meant "genteel, affordable woolens" (1670s), evidently from the same source. The surname is d'Ouilly, from one of several places called Ouilly in Normandy.

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Definitions of doily

doily (n.)
a small round piece of linen placed under a dish or bowl;
Synonyms: doyley / doyly
From wordnet.princeton.edu