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If you're in the UK, the name comes from St Olave, name of a former parish in Southwark, a village in Norfolk and several dedicated churches across the country. St Olave is actually an archaic spelling for St Olaf, but Olave has a long history of use on females here, probably because of its feminine-looking ending and similarity to Olive. So it could be considered (in the UK at least) as a female version of Olaf, which with the same meaning - 'ancestor's descendant' - would make a nice middle name for someone being named after her great-grandmother.
Other bearers: Lady Baden Powell, wife of the founder of the Scout movement, was an Olave: https://en.wikipedia.org/wiki/Olave_Baden-Powell