Of those 3 things, only the
Olivia /
Lydia thing bothers me. They're very close to rhyming, and too close imo, even though
Olivia is a middle name and not used every day.
Although there are 2
Lydia's at your church, it's not too popular in general, and the chances are your daughter will move around in her lifetime, as will those other
Lydia's. That shouldn't be a reason not to use the name.
As for your husband's aunt ... that depends. It's not a very unusual name; I doubt she'd think it was definitely in her honour, if that's the problem. Unless you dislike her, it shouldn't be an issue. Or are you worried about confusion in the family? That'd depend how much you see of her.
I do think
Lydia sounds best with
Isabel.
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♥
Elinor♥