The moniker was inspired by the Queen's childhood nickname, Lilibet, while her middle name is a tribute to Harry's late mother, Princess Diana.
On Monday, June 7, Harper's Bazaar reported that a palace spokesperson confirmed to the outlet that "Harry did indeed inform the queen of his and Meghan's naming plans before Lili's birth."
However, BBC royal correspondent Jonny Dymond shot down the notion that the couple had given Her Majesty The Queen a heads up about the tribute. "Palace source tells BBC that the Queen was not asked by Meghan and Harry over the use of her childhood nickname; reports suggested Harry had sought permission from Queen to call newborn ‘Lilibet’; but Palace source says the Queen was ‘never asked,’” he tweeted on Wednesday, June 9. (It's unclear if Prince Harry 'informed' The Queen he would be using her nickname, rather than asked for permission.)
As OK! previously reported, the 95-year-old was introduced to Lilbet over a video call.
A Royal Observer insider noted that Harry and Meghan broke the news of their youngest child's arrival to the Queen before anyone else.
"Since the couple moved to L.A., the Queen has become very familiar with Zoom. She talks to Harry, Meghan and Archie via technology, and now she is using it to meet her granddaughter," the source said. "She is a very modern grandmother."
According to royal historian Robert Lacey, Harry and his grandmother share a "remarkable bond" that grew following his mother's death.
"She was a sort of stepmother for both Harry and William," Lacey noted to PEOPLE. "We have all focused on her coaching of William as the future King, but we are realizing now the importance of the emotional bonds that she's been able to establish with Harry and their ability to talk to each other directly. That affection remains."
The Queen could meet her namesake later this year. According to PEOPLE, the couple may decide to spend Christmas in Sandringham if COVID-19 restrictions permit — and are also likely to return to the U.K. in June 2022 for the Queen's Platinum Jubilee.
Harry is due to return to the U.K. alone in July to unveil a statue of Princess Diana in Kensington Palace with Prince William.
According to a Royal Observer insider, Meghan and Harry have also spoken with William and Prince Charles since their daughter's birth.
"This is the beginning of a new chapter within the family that will hopefully heal old wounds. Finally, there is hope that the family can reunite," the source explained. "No one knew it at the time, but when Archie was born, Harry and Meghan were so angry with the family that they wanted nothing to do with them moving forward."
"That is why they broke all traditions and went with a totally new royal name. Now things have changed and they both very much want their daughter to be part of the family, which is why they chose the name Lilibet, the Queen’s childhood nickname."
"She is more than we could have ever imagined, and we remain grateful for the love and prayers we’ve felt from across the globe," Harry and Meghan said in a statement after welcoming Lili on Friday, June 4. "Thank you for your continued kindness and support during this very special time for our family."