The surname Lilly is an Old English name that can be traced back to the old Anglo Saxon tribes of Britain. Elizabeth was a common name in Britain and the name lilly was derived from it. It belongs to the category of names that were derived from mother’s name. It is also a habitational name as many times the name was given to people living in Lilley in Hertfordshire, or Lily in Berkshire. However the records show that the first family with this name was found in Worcestershire where they had been living since early times.