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Ok, a short introduction to Bulgarian history.
Once upon a time, the Bulgarian kingdom was not a powerful one (what a surprise!). The king was no good and the kingdom was being attacked by the Khazars. So there came that minor nobleman, Vulo (meaning wolf) who gathered a small army of his and won several battles against the Khazars. In the meantime he killed the king, married the queen, became a king himself (1277-1280) and was killed soon after.
Of course, all that was described in the history texts. There was a fragment what happened "in the time of ... and Vulo". Since "and Vulo" is "i Vulo" in Bulgarian, the 15th century historians wrongly read the name as "Ivulo" and for 700 years "Ivulo" developed into the contemporary "Ivaylo". Ivayla is just a female version of this.
One last thing. For the obvious similarity, nowadays Ivaylo is thought to be a version of Ivan. And, while Ivaylo is kinda popular, Ivayla (the female) isn't. I've heard of only one other Ivayla (a recent miss Bulgaria :). Both her and my gradmas were named Ivanka and as Bulgarian tradition wants, we are named after them, but were "modernized" as Ivayla.
End of story :).