late 14c., "taking words in their natural meaning" (originally in reference to Scripture and opposed to mystical or allegorical), from Late Latin literalis/litteralis "of or belonging to letters or writing," from Latin litera/littera "letter, alphabetic sign; literature, books" (see letter (n.1)). Related: Literalness.
Meaning "of or pertaining to alphabetic letters" is from late 14c. Meaning "concerned with letters and learning, learned, scholarly" is from mid-15c. Sense of "verbally exact, according to the letter of verbal expression" is attested from 1590s, as is application to the primary sense of a word or passage. Literal-minded is attested from 1791.
word-forming element making nouns implying a practice, system, doctrine, etc., from French -isme or directly from Latin -isma, -ismus (source also of Italian, Spanish -ismo, Dutch, German -ismus), from Greek -ismos, noun ending signifying the practice or teaching of a thing, from the stem of verbs in -izein, a verb-forming element denoting the doing of the noun or adjective to which it is attached. For distinction of use, see -ity. The related Greek suffix -isma(t)- affects some forms.
<a href="https://www.etymonline.com/word/literalism">Etymology of literalism by etymonline</a>
Harper, D. (n.d.). Etymology of literalism. Online Etymology Dictionary. Retrieved $(datetime), from https://www.etymonline.com/word/literalism