late 14c., "formal authorization, official permission, permit, privilege," from Old French licence "freedom, liberty, power, possibility; permission," (12c.), from Latin licentia "freedom, liberty; unrestrained liberty, wantonness, presumption," from licentem (nominative licens), present participle of licere "to be allowed, be lawful," from PIE root *leik- "to offer, bargain, make a bid" (possibly source also of Lettish likstu "I come to terms").

Meaning "formal (usually written) permission from authority to do something" (marry, hunt, drive, etc.) is first attested early 15c. Meaning "excessive liberty, disregard of propriety" in English is from mid-15c. In Middle English spelled licence, licens, lisence, lissens, licance. There have been attempts to confine license to verbal use and licence to noun use (compare advise/advice, devise/device, and see note in OED); in the U.S., license tends to serve as both verb and noun.

Poetic licence "intentional deviation from recognized form or rule" is from 1733, earlier as lycence poetycall (1530). The licence-plate is from 1870 (of dogs and wagons before automobiles); licence-number is by 1903.

"to know" (archaic), Old English witan (past tense wast, past participle witen) "to know, beware of or conscious of, understand, observe, ascertain, learn," from Proto-Germanic *witanan "to have seen," hence "to know" (source also of Old Saxon witan, Old Norse vita, Old Frisian wita, Middle Dutch, Dutch weten, Old High German wizzan, German wissen, Gothic witan "to know"), from PIE root *weid- "to see." The phrase to wit, almost the only surviving use of the verb, is first recorded 1570s, from earlier that is to wit (mid-14c.), probably a loan-translation of Anglo-French cestasavoir, used to render Latin videlicet (see viz.).