Royal experts believe that Prince Harry and Meghan Markle naming their daughter after her great-grandmother Queen Elizabeth II is a welcome move amid their feud with the British royal family, but still controversial for numerous reasons.

The baby, who was already speculated to be a "source of healing" for the Sussexes and the rest of the family, has been named Lilibet Diana Mountbatten Windsor, Lilibet being a moniker for the Queen, while Diana being the name of her late grandmother the Princess of Wales. Royal commentator Dickie Arbiter, who also served as a senior aide to the Queen from 1988 until 2000, called the name a peace offering but wondered why Diana wasn't chosen as the first name.

Diana also happens to be the middle name of Harry's niece Princess Charlotte, who also has Elizabeth as a middle name, so it was available to be chosen as the first name for his daughter.

"Choosing Diana's name for their baby isn't a surprise, as we all know Harry's closeness to his mother was such that her loss has caused him mental issues even 24 years on. But I wonder what Diana would have made of their daughter having her name as a middle, and not a principal name?" Arbiter told The Mirror.

The royal expert added that Harry, who moved to California to distance himself from the royal family, has made a complete u-turn with the choice of the name. "So I wonder if taking the Queen's nickname for his baby is an olive branch? Only Harry can answer that. The Queen gave herself the nickname Lilibet because she couldn't say Elizabeth as a child, and it stuck. I think it's rather cute," he said.

However cute, Arbiter believes that the move to christen a baby with a nickname can be seen as a bit "quite controversial." He also noted that the royal tot, who will herself be called Lili, which is short for Lilibet and also happens to be a name Harry expressed likeness for two years ago, won't know any other Lilibets growing up.

"I doubt the little girl will grow up with any other Lilibets in her classes (although people in California call their children all sorts). So maybe that's Harry and Meghan showing their independence again - just like Archie, another non-royal name," he said.

Meanwhile, royal expert Duncan Larcombe also suggested that Harry and Meghan are trying to reconcile with the Queen and the royal family after their recent public interviews about the 'Firm.'

"By choosing the childhood name of the Queen, Harry and Meghan have given their daughter the most royal of names. To many, such a specific nod to Her Majesty will be seen as the first major olive branch offered by the Sussexes since Megxit. A sign perhaps Harry and Meghan are eager to build bridges," Larcombe told The Sun.

However, he added that the damage may be too much to be repaired with the recent tribute. "The question really is are there [any] bridges left to build? The damage is done, and it's sadly going to take a lot more from the Sussexes before any healing of the feud can begin," he explained.

Royal expert Ingrid Seward also expressed similar sentiments, noting that naming the baby after the Queen is "charming" but also a bit "bemusing."

"How strange as they profess to want to remove themselves from royal life that they have chosen to use such an intimate royal nickname for their daughter. It was affectionately used by only her parents and her husband. But I am certain she will be pleased and perhaps a little confused that Prince Harry has decided to use this name," Seward wrote for The Sun.

British royal family at Commonwealth Day service
There were reports of splits within the royal family, and a growing rift between Harry and William. Photo: POOL / Phil Harris