Etymology
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nice (adj.)

late 13c., "foolish, ignorant, frivolous, senseless," from Old French nice (12c.) "careless, clumsy; weak; poor, needy; simple, stupid, silly, foolish," from Latin nescius "ignorant, unaware," literally "not-knowing," from ne- "not" (from PIE root *ne- "not") + stem of scire "to know" (see science). "The sense development has been extraordinary, even for an adj." [Weekley] -- from "timid, faint-hearted" (pre-1300); to "fussy, fastidious" (late 14c.); to "dainty, delicate" (c. 1400); to "precise, careful" (1500s, preserved in such terms as a nice distinction and nice and early); to "agreeable, delightful" (1769); to "kind, thoughtful" (1830).

In many examples from the 16th and 17th centuries it is difficult to say in what particular sense the writer intended it to be taken. [OED]

By 1926, it was pronounced "too great a favorite with the ladies, who have charmed out of it all its individuality and converted it into a mere diffuser of vague and mild agreeableness." [Fowler]

"I am sure," cried Catherine, "I did not mean to say anything wrong; but it is a nice book, and why should I not call it so?" "Very true," said Henry, "and this is a very nice day, and we are taking a very nice walk; and you are two very nice young ladies. Oh! It is a very nice word indeed! It does for everything." [Jane Austen, "Northanger Abbey," 1803]

For sense evolution, compare fond, innocent, lewd, also silly.

Origin and meaning of nice

Nice

Mediterranean seaport of France, ceded to France in 1860 by Sardinia; ancient Nicaea, from Greek nikaios "victorious," from nikē "victory" (see Nike). Nizzard "a resident of Nice" is from Nizza, the Italian form of the city name. 

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Definitions of nice
1
nice (adj.)
pleasant or pleasing or agreeable in nature or appearance; "what a nice fellow you are and we all thought you so nasty"- George Meredith;
a nice day
nice manners
a nice dress
had a nice time at the party
the corn and tomatoes are nice today
a nice face
nice (adj.)
socially or conventionally correct; refined or virtuous;
a nice girl
Synonyms: decent
nice (adj.)
done with delicacy and skill;
a nice bit of craft
a job requiring nice measurements with a micrometer
a nice shot
Synonyms: skillful
nice (adj.)
excessively fastidious and easily disgusted;
too nice about his food to take to camp cooking
Synonyms: dainty / overnice / prissy / squeamish
nice (adj.)
exhibiting courtesy and politeness;
a nice gesture
Synonyms: courteous / gracious
2
Nice (n.)
a city in southeastern France on the Mediterranean; the leading resort on the French Riviera;
From wordnet.princeton.edu