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I love Lydia, and since Olivia is your dd's mn, I wouldn't worry about them being too similar. I definitely prefer it to Liliana and Leah (which are both lovely, but Lydia is far better imo), and I love the sound of Isabel & Lydia as sisters. :) If it's popular in your area, you might want to reconsider if you're concerned about popularity. If not, I don't think it'll be number 1 on the charts anytime soon, but it could be getting more popular, for sure. Also, if your dh isn't very close to his aunt, or if you want to honor her, either way, I think using Lydia is fine. I prefer it to Lidia, which while nice has the word "lid" spelled out in it, which bothers me. LOL.

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~Heather~