A playful or affectionate term, possibly British slang for something small, cute, or endearingly cocky.
From 'cocky' + 'olly' (a British diminutive or affectionate suffix), creating a playful, informal term. This appears to be primarily British English slang with roots in early-to-mid 20th century.
The '-olly' suffix in British English creates all sorts of cute words—cockyolly is like saying something is 'adorably cocky'!
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