rally, Cally, Mally,1 syllable: halle2 syllables: alie, alley, alli, allie, balli, bally, braley, bralley, cali, calley, cally, challis, dalley, dally, devalle, galley, galli, graley, halley, hally,...
It means princess.
I'd suspect it's because she's his godmother, although this has never been indicated.
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Harry and Sally met through a mutual college friend, Sally's college roommate who happened to be Harry's girlfriend. Harry and Sally were both moving to New York so they were introduced to each other...