That looks more like early modern English than Middle English. The "ly" form is not very common throughout most of the Middle Ages. As for Old English, there are no known uses of the suffix at all.
> It is- if we're talking in old/middle English.
> I have a large archive of journals and diaries and receipt
> (that's receipt as in RECIPE not as in the slip of paper
> saying what you bought) books dating back a couple of
> centuries, and goodly appears quite often.
> "Withe the flat of the Blade crush ye a goodly amount of
> henbane, yarrow and motherwort..."