Origin and history of nicely

late 13c., "foolish, ignorant, frivolous, senseless," from Old French nice (12c.) "careless, clumsy; weak; poor, needy; simple, stupid, silly, foolish," from Latin nescius "ignorant, unaware," literally "not-knowing," from ne- "not" (from PIE root *ne- "not") + stem of scire "to know" (see science). "The sense development has been extraordinary, even for an adj." [Weekley] — from "timid, faint-hearted" (pre-1300); to "fussy, fastidious" (late 14c.); to "dainty, delicate" (c. 1400); to "precise, careful" (1500s, preserved in such terms as a nice distinction and nice and early); to "agreeable, delightful" (1769); to "kind, thoughtful" (1830).

In many examples from the 16th and 17th centuries it is difficult to say in what particular sense the writer intended it to be taken. [OED]

By 1926, it was said to be "too great a favorite with the ladies, who have charmed out of it all its individuality and converted it into a mere diffuser of vague and mild agreeableness." [Fowler]

"I am sure," cried Catherine, "I did not mean to say anything wrong; but it is a nice book, and why should I not call it so?" "Very true," said Henry, "and this is a very nice day, and we are taking a very nice walk; and you are two very nice young ladies. Oh! It is a very nice word indeed! It does for everything." [Jane Austen, "Northanger Abbey," 1803]

For sense evolution, compare fond, innocent, lewd, also silly, simple.

common adverbial suffix, forming, from adjectives, adverbs signifying "in a manner denoted by" the adjective; Middle English -li, from Old English -lice, from Proto-Germanic *-liko- (source also of Old Frisian -like, Old Saxon -liko, Dutch -lijk, Old High German -licho, German -lich, Old Norse -liga, Gothic -leiko). See -ly (1). It is cognate with lich, and identical with like (adj.).

Weekley notes as "curious" that Germanic uses a word essentially meaning "body" for the adverbial formation, while Romanic uses one meaning "mind" (as in French constamment from Latin constanti mente). The modern English form emerged in late Middle English, probably from influence of Old Norse -liga.