"shining, luster, brightness, splendor" 1602 (in "Hamlet" iii.2), noun use of adjective sheene "beautiful, bright," from Old English scene, sciene "beautiful; bright, brilliant," from Proto-Germanic *skauniz "conspicuous" (source also of Old Frisian skene, Middle Dutch scone, Dutch schoon, Old High German skoni, German schön "fair, beautiful;" Gothic skaunjai "beautiful"), from PIE root *keu- "to see, observe, perceive." It is related to show (v.), and OED calls it "virtually a verbal noun to shine."
The meaning "thin film of oil on water" is from 1970. As an adjective now only in poetic or archaic use, but in Middle English used after a woman's name, or as a noun, "fair one, beautiful woman."
updated on August 14, 2022