GNU Collaborative International Dictionary of English

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Found one definition

1.       
   Doily , n. [So called from the name of the dealer.]
   A kind of woolen stuff. [Obs.] “Some doily petticoats.”  
   Dryden.
   
   1913 Webster
   A fool and a doily stuff, would now and then find days of grace, and be worn for variety.
    Congreve.
   
   1913 Webster
   A small napkin, used at table with the fruit, etc.; -- commonly colored and fringed.
   1913 Webster