The Illsley and Ilsley names derive from a pair of hamlets in Berkshire - East Ilsley and West Ilsley, which are mentioned in the Domesday Book (1888)as Ildeslei and this refers to a clearing (lea) belonging to Hild. So Hild's lea.
The earliest record of a person using the name is Isabella de Idleslei in 1297. Some early versions of the name were spelled with Ie and D: e.g. Ieldsley, Ildesly.
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