The name Charly has its roots in the Germanic languages, specifically derived from the Old English name "Ceorl," which means "free man" or "peasant." It is a diminutive form of the name Charles, which itself comes from the Germanic name "Karl," meaning "man" or "husband."

Charly gained popularity during the Middle Ages, particularly in England and France. One of the earliest recorded instances of the name appears in the Domesday Book, a manuscript survey of England commissioned by William the Conqueror in 1086. Here, the name is spelled as "Cherli."

In medieval times, Charly was a common name among the lower classes and peasantry, reflecting its origins as a name associated with the free commoners. However, it gradually gained acceptance among the nobility and aristocracy, with several notable figures bearing the name.

One of the earliest famous individuals named Charly was Charly Martel (c. 688-741), a Frankish statesman and military leader who played a pivotal role in halting the Muslim conquest of Western Europe at the Battle of Tours in 732. His victory earned him the epithet "Martel," meaning "the Hammer."

Another historical figure named Charly was Charly the Bold (1433-1477), the last Duke of Burgundy. He was known for his ambitious attempts to establish an independent kingdom in the Low Countries, ultimately leading to his downfall and the end of the House of Valois-Burgundy.

During the Renaissance, the name Charly became more widespread across Europe. One notable bearer was Charly de Blois (c. 1516-1590), a French nobleman and diplomat who served as the Grand Master of the Order of Saint John.

In the 18th century, Charly Cornwallis (1738-1805), a British Army officer and colonial administrator, gained fame for his role in the American Revolutionary War and his later reforms as the Governor-General of India.

In the realm of literature, Charly Dickens (1812-1870), the renowned English novelist, is perhaps one of the most famous individuals named Charly. His works, including "Oliver Twist," "A Christmas Carol," and "Great Expectations," have left an indelible mark on English literature and popular culture.